14-20 - RTOWN OF PROSPER, TEXAS
RESOLUTION NO. 14-20
A RESOLUTION BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS,
ACCEPTING THE 2012-2013 FISCAL YEAR INDEPENDENT AUDIT REPORT AND
COMPREHENSIVE ANNUAL FINANCIAL REPORT; MAKING FINDINGS;
AUTHORIZING PUBLICATION OF THE AUDIT; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Town Council is required by Section 7.18 of the Town Charter to call for an
Independent Audit to be made of all accounts of the Town at the close of each fiscal year, a report of
which is to be presented to the Town Council; and
WHEREAS, Town Staff engaged Davis Kinard & Co., P.C., Certified Public Accountants, to
complete the Town's Fiscal Year 2012-2013 Independent Audit; and
WHEREAS, a copy of the Independent Audit and accompanying Financial Statements for the
2012-2013 fiscal year were received and reviewed by Town staff; and
WHEREAS, the Town Charter requires that upon completion of the audit, a copy of the audit
shall be posted to the Town's website and copies placed on file in the office of the person performing
the duties of Town Secretary, as a public record.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, THAT:
SECTION 1
The Town Council of the Town of Prosper, Texas, hereby accepts the Town's 2012-2013
fiscal year financial audit as presented by Davis Kinard & Co., P.C., Certified Public Accountants.
SECTION 2
A copy of the completed audit shall be published immediately on the Town website and
copies of the audit placed on file in the office of the person performing the duties of Town Secretary,
as a public record.
SECTION 3
This Resolution shall take effect from and after the date of its passage.
DULY PASSED, APPROVED, AND ADOPTED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS, ON THIS 25TH DAY OF MARCH, 2014.
r
Ray Smith, ayor
ATTEST:
Robyn BattlejTwn Secretary
APPROVED AS TO FORM AND LEGALITY:
Terrence S. Welch, Town Attorney
1-1
Resolution No. 14-20, Page 2
S. y. �_ �, "�,
TOWN OF PROSPER, TEXAS
Comprehensive Annual Financial Report
Year Ended September 30, 2013
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letterof Transmittal......................................................................................................................................................... i
Certificateof Achievement............................................................................................................................................... vii
OrganizationalChart........................................................................................................................................................viii
Listof Principal Officials.................................................................................................................................................. ix
FINANCIAL SECTION
IndependentAuditor's Report......................................................................................................................................... 1
Management's Discussion and Analysis.......................................................................................................................... 3
Basic Financial Statements:
Government -Wide Financial Statements:
Statementof Net Position..................................................................................................................................... 12
Statementof Activities.......................................................................................................................................... 13
Fund Financial Statements:
Balance Sheet — Governmental Funds..................................................................................................................
15
Reconciliation of Balance Sheet — Governmental Funds to the Statement of Net Position ..................................
17
Statement of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds ............................
18
Reconciliation of Revenues, Expenditures and Changes in Fund Balances — Governmental Funds to the
Statementof Activities.......................................................................................................................................
22
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget (GAAP Basis) and Actual — General Fund............................................................................................
23
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual — Impact Fee Fund.......................................................................................
24
Statement of Revenues, Expenditures, and Changes in Fund Balance
Budget (GAAP Basis) and Actual — Contributions Fund...................................................................................
25
Statement of Net Position — Proprietary Funds.....................................................................................................
26
Statement of Revenues, Expenses, and Changes in Fund Net Position — Proprietary Funds ................................
27
Statement of Cash Flows — Proprietary Funds......................................................................................................
28
Notes to Financial Statements................................................................................................................................... 30
Individual Fund Schedules:
Schedule of Revenues, Expenses and Changes in Net Position
Budget and Actual — Water and Sewer............................................................................................................. 47
Schedule of Revenues, Expenses and Changes in Net Position
Budget and Actual — Storm Drainage............................................................................................................... 48
TABLE OF CONTENTS
(continued)
STATISTICAL SECTION
Financial Trends:
NetPosition by Component.................................................................................................................................. 49
Changesin Net Position........................................................................................................................................ 51
Fund Balances of Governmental Funds................................................................................................................ 55
Changes in Fund Balances of Governmental Funds............................................................................................. 57
Revenue Capacity:
General Governmental Tax Revenues by Source.................................................................................................. 59
Assessed Value and Estimated Actual Value of Taxable Property....................................................................... 60
Property Tax Rates — Direct and Overlapping Governments................................................................................ 61
Property Tax Levies and Collections.................................................................................................................... 63
PrincipalProperty Taxpayers................................................................................................................................ 64
Debt Capacity:
Ratios of Outstanding Debt by Type..................................................................................................................... 65
Ratios of General Bonded Debt Outstanding........................................................................................................ 67
Direct and Overlapping Governmental Activities Debt........................................................................................ 68
LegalDebt Margin Information............................................................................................................................ 69
Demographic and Economic Information:
Demographic and Economic Statistics.................................................................................................................. 71
PrincipalEmployers.............................................................................................................................................. 72
Operating Information:
Operating Indicators by Function/Program........................................................................................................... 73
Full -Time Equivalent Town Government Employees by Function...................................................................... 75
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March 10, 2014
To the Honorable Mayor, Members of Town Council, and
Citizens of the Town of Prosper, Texas
The Town's Management Staff is pleased to sub
mprehensiv
Report ("CAFR") of the Town of Prosper ("Town")
I ye
2013. The Town's Management assumes responsi
a
completeness and fairness of the presentation, incl
closures.
knowledge and belief, the enclosed data is accura
aterial respects
reported in a manner designed to present fairly the fi
position and res
4
of the various funds of the Town. To enable the
der to gain an and
Town's financial activities, all necessary disclosures have been included.
The Town is required to obtain an annual audit of the books of account, financi
transactions of all administrative departments of the Town. The Town's finan
have been audited by Davis Kinard & Co. PC, a firm of licensed certified publ
The goal of the independent audit is to provide reasonable assurance th
statements of the Town for the fiscal year ended September 30, 2013, are
misstatement. The independent audit involved examining, on a test
supporting the amounts and disclosures in the financial statements; assessi
principles used and significant estimates made by management; and eval
financial statement presentation. The independent auditor concluded, bas
that there was reasonable basis for rendering an unqualified opinion
statements for the fiscal year ended September 30, 2013, are fairly prese
with Generally Accepted Accounting Principles ("GAAP" ). The independen di
presented as the first component of the financial section of this report.
The CAFR is prepared in accordance with GAAP in the United States of
by the Government Accounting Standards Board. The CAFR is presenl
introductory, financial, and statistical. The introductory section includes
the Town's organizational chart, and a list of principal officials. The finar
the management's discussion and analysis ("MD&A"), the governr
financial statements, notes to basic financial statements, required supp
other supplemental information, as well as the independent auditors'
financial statements. The statistical section includes selected finan
information which is presented on a multi -year basis.
The MD&A is a narrative introduction, overview, and analysis to
financial statements. The MD&A can be found immediately foil ni,
auditors' report. This letter of transmittal is designed to complement e
be read in con'unction with the MD&A.
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Financial
40
i and the
;st of our
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aerations
fig of the
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■The Reporting Entity
QoVn is a [,*jGIitk,,,,a1 subdivision, and a pille rnunicipality file 'laws of the State,
A Flown' Ruko C'harten, `!,A�,ts aP!p,Q-1ved Cj, ill"e' qualitied Vitt-Irs of I m all elrvclioli hmio
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10 -i,,rn tier T 20f%` and was nfore recAj;flj,! revised on 'Mav 't, 210' The T,,.,,j,,,,n a,4:,erates: oil4h
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a Toil G ikound! C �,ory .1prised a-' -hNN six The tel"ll cif o'ice is three
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yars. i1'fe "Vwrn n- is the d executive officer 10r flee Town,
ej vit�IAaslv.,
-Ile "olovr.i provides include! !-,ubHc safe-.1,11i "police fire Pn,,,j.e,:,..�,:.,.IoI,, dispatch and
r7c hways arl treets, waufr/ivastetvater and stOrrn aif*13�!C- UtijitisS,
dp.�,:Il c"Curi) I
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The o.,vrnn s. s; I I I i -! ci 'at 6'. 0 0 0 1 0
Crossroads of Preskxl Rc,�i !�, I,, i US
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The "foTvIl I,-, horTle to. fi.rs,.t nats7
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lN, statp diar,.Plo snort s, tearils: oicturesiclue 'artch 'es
• flen*ities" AocesS to Me f 'her ar
arEit", 000i
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'Am
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h is CjaCO IS 1,01 fLI,',l LIP
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sharp'N ill 9!f- next 'Now
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The "(ffIll C,. uSUS "Cist.flation for"thel Town was 2,097,7and the 201 4.R,sfir4afe is i U11 9,
25,000 ■
20,000
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6,350
5,0100 M
3�100
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NN I S041ce. Pap won estimates to dan ag from North C.M.1 T ..a Council of Goverrwents. FNre estimates are from
Town of Prosper staff.
ON 0
History of Prosper
Prosper began with the first settlers arriving in this area in 1846. Those who settled here
were drawn to North Texas' black prairie soil - rich, fertile land that nurtured a thriving cotton
crop in a time when cotton was "King". Between 1850 and 1902, two settlements coexisted.
One community, two miles south of the present town, was called Rock Hill. The second
community, one mile north, was called Richland. The development of these small
communities was expedited in 1876 when County Courts ordered small tracts of land to be
established for quick sale. These tracts, each approximately 160 acres in size, were sold for
$3.50 per acre. Dr. A. T. Bryant of McKinney purchased one of the tracts, which later became
the geographic nucleus for the Town of Prosper.
The establishment of the St. Louis & San Francisco Railroad in March of 1902 created the
change that forced the communities of Rock Hill and Richland to merge forming the Town of
Prosper. For years, Prosper was the central stop for the railroad between Dallas and
Sherman. When community officials applied for a Post Office with the name "Richland", they
were informed that city name was already taken. Postmaster B.J. Naugle asked for an
alternative name and J.C. Slaughter suggested the name Prosper. A new name was adopted
for the hybrid community - one that spoke of the prosperous living conditions and the
prosperous crops harvested that year. And so it was that the town of Prosper was born.
The Town of Prosper was incorporated in 1914 with a commission form of government and a
population of 500. U.N. Clary was Mayor and served in that position for the next 49 years. It
served for decades as a market center for area farmers and their abundant cotton and corn
crops. From the mule drawn wagon and horse drawn buggy, the automobile evolved. Thus
began the evolution of people moving in and out of the rural community. Surviving the war
and the depression, the mechanization of farming provided the next big impact on Prosper's
population. In 1980, the introduction of light industry, combined with the growth of the
Metroplex, led to a comeback for Prosper.
To this day, Prosper has managed to retain its 19th century country charm, carefully
controlling its growth to that end. Unlike the bustling cities of Dallas, Plano and Frisco that lie
just a few miles south, Prosper is characterized by estate -size home sites, pristine rolling hills
and vast expanses of open land. Today, Prosper is the home to more than 100 businesses
and hundreds of new families.
The Economic Outlook
The Town continues to enjoy new home permits at a record pace and benefits tremendously
from its location. Prosper, while not immune from economic pressures, has thrived more
than most DFW communities. According to a recent Dallas Business Journal article (January
2012), Prosper is listed as sa.ms= - - s+oaom
the fastest growing -
community in the region for 83 Sal
communities over 10,000
in population. The new s�
S3�aao sZ~z,�o,
SW
homes permitted in 2013 _ 1�
averaged $404,300 in
value and 4,741 total
square feet. In July of
2010 D Magazine rated
Prosper as the 5th Best
Suburb in the region.
Fortunately, the Town has
-
coo
Swa000
s-
Mill M2
riGEOW mmi►axa. Umbili m
UMAMIPPWt TAW
Source: Collin CAD and Denton CAD Certified Totals 2004-2013
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uropert�vlluat�jons increased by $ -194-W 0 5.5�,,;6) fic-7
FY 20`1`4-2014. Froperty values increase'd froni $1,253.YM to Sle447,41vl. The bulk ca the
increase, WarfiW fr!°rf new constnNctiai-N Awuntpg $118,8*1, [,*)st of the T own*'s ci.frren,
Je Den4on Counti; portion is 'Elxpe,1-14-el., o values connie from Ct,---v proner t
ty-'s, bount d
have in if .Eineor fuw-
The -,conc-,nny cl;ctat�s the fln,,ina ofK)C1JU106-J`) increaces, tlut tne, final populatio7i Iiiii be most
'Ye-affeidh0 e Od.- iyO-eIv-�f li kNII(AAM, tNin o c ao, arcs ve I ct 20 I2■PiIt-'j-1, �n,, 7 4-7of lSt an/ repla7e!th200PIin. F o 1; c v --t a k e ric a n dlT7w 7
s,aff wM uscl, 'hi,I doc-.umera as QItjuiovd e
i- "iis, n;.wit-AIIQ
GVE;lty Out Prjects'an� t1he TQvVu
fl—, N , 7�T'FlrIectaIf IPisnM!1)1.,f. ils . .t t K
lea,lsilto t estankshed 'Asion. The lrt tu re Lan/i Ins R; 'A"I Overall firar, Rn (blck,"Allets JQ
flt
pativ!%i of deliilopniertt vr%�in Proslsel%
0 0
The Town of Prospe Town COLmc' has continued its implementation of rate
recommendations that s p orl the TovinmCouncil's adopted Water and WastewateroUtlity
Comprehensive Busi ass Ian. The Plan contains recommendations to enhance revenues,
■ 'to establish at I;astma 60 day operAons and maintenance reserve, andAto fundman annual 0
contribution of 2% to a capi al replacement program,
okiore detailed revenue formation can be explored in the MD &A section of the financiaP..
eection of this CAFR, ■
r■ The.DFW. k1stroplex continues to Outperform most other major metropolitan arc -as for job
I
growth and stability. Town staff believes.Prosper will maintain steady economic development
and is currently positioning itself for.rapidCrovvih.
Town manaciement is responsible for establishing and maintaining an internal control
structure designed to ensure that the assets of the Town are protected from loss, 1heft, or
misuse. Management must also ensure that adequate accounting data is compiled to allow
for the preparation of financial statements in conformity with GAAP, The internal control
structure is designed to provide reasonable, but not absolute, assurance that these objectives
are met, The concept of reasonable assurance recognizes that (1)the cost of control
should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits
requires estimates and judgments bymanegemenL All internal control evaluations occur
within the above framework.
The Tnwn\a accounting records for general governmental operations are maintained on a
modified accrual baais, with revenues recognized when measurable and mmai|atde, and
expenditures recorded when the liability is incurred. Proprietary operations are maintained
onefull accrual basis,
The objective of budgetary controls is to ensure compliance with legal provisions contained in
the annual budget approved bythe Town Council. The annual budget is developed and
controlled at the department level, and serves as the foundation for the Tovvn'oMnanoia|
planning and control. The budget iaprepared byfund and department (e.g. General Fund-
Po|ima. General Fund -Fire. VVwher8Vaotewaa er Utility — Utility Billing). Department Heads may
transfer resources within a department with the Town Manager's approval. Any amendments
or additional funding requests for appropriations over that of the budgeted department level
total need approval from the Town Council.
The accompanying CAM incorporates all funds of the Town and includes all government
activities, organizations and functions for which the Town is financially accountable. The
criteria used in determining activities to be reported within the Towm's basic financial
statements are based upon and consistent with those set forth by the Governmental
Accounting Standards Board,
Component units are legally separate organizations that a primary government must include
amapart ofits financial entity, (]nMay 8. 19&5.Town ofProsper voters approved the 44
Sales Tax proposition which increased the sales arid use tax byl6of1%for the promotion
and development nfnevvand expanded business enterprises, The 4/\funds account for the
local sales tax used to encourage additional private investment that will increase and diversify
the tax base, create jobs, lower residential taxes, Increase the number ofretail; commercial
and industrial companies locating to the Town and improve Prosper residents' quality of life.
The Corporation is town -chartered and governed byeseven-member Board ofDirectors
appointed bythe Town Council, The Town has Included financial statements for the Prosper
Economic Development Corporation in its government+widefinancia| statements,
The Government Finance Officers Association ofthe United States and Canada (GFDA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the Town of
Prosper, Texas for its comprehensive annual financial report for fiscal year ended September
3O'2O12.The Town nfProsper, Texas has received a Certificate nfAchievement for the last
three consecutive years. |norder tobeawarded aCertificate ufAchievement, ogovernment
unit must publish an easily readable and efficiently organized comprehensive annual financial
report. This report must satisfy both generally accepted accounting principles and applicable
legal requirements.
ACertificate ofAchievement ievalid for a period ofone year only, We believe that Our current
comprehensive annual financial report continues tomeet the Certificate ofAchievement
a
Program's requirements and we are submitting it to GFOA to determine its eligibility for
another certificate.
Acknowledgements
The preparation of this report could not be accomplished without the efficient and dedicated
services of the Town Manager and Finance Department staff. I would like to express my
appreciation to all employees who contributed to its presentation. Acknowledgement is also
given to the representatives of Davis Kinard & Co. PC for their assistance in this year's report
with special thanks to Cara Hilbrich, the Audit Manager for this engagement.
Lastly, I would also like to thank the members of the Town Council for their interest and
support in planning and conducting the financial operations of the Town in a responsible and
progressive manner.
Re7pectfully submitted,
r
ent R. ustin, CPFO
inance Director
vi
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Presented to
• ._
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
September 30, 2012
Executive Director/CEO
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O,.? i;NCiI_ I`YI'EWBER Puc 2, DE7,0rY IV1ArOR P`Ro-TE o KENNET: H Du;ci C.i'R
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• C.iOUNCiL P46MBER PLA{:.F 3 CURRY'titOGF—A.SAW3 JP_ � ■
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• COUNCIL MEMBER PLACE. S _ DANNY WILSON �
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CouNcit. MEMBER PLATE 6 JAS®?N DIXON ■
APPOINTED OFFICIALS
•TOWN MANAGER HARLAN JEFFERSO •
• • TOWN SECRETARY _ • • OBYN BATTLE
• • •CHIEF OF POLICE • • 1 KIRK MCFARLIN•
• • FIRE CHIEF • ROIE TUCKER •
■ EXECUTIVE DIRECTOR OF DEVELOPMENT AND COMMUNITY SERVICES HULON VVE18
DIRECTOR OF FINANCE _ ETUSTI •
• 1 •DIRECTOR OF DEVELOPMENT SERVICES ° CHRIS COPPLE °
1 1 • • ■DIRECTOR OF HLWAAN RESOURCES • _BAq RALFY
1 1 • DIRECTOR OF PUBLIC WORKS 1 FRANK.IARO •
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CERTIFIED PUBLIC ACCOUNTANTS
Quality. Integrity. Knowledge.
Independent Auditor's Report
To the Honorable Mayor and Members of the Town Council
Town of Prosper, Texas
First Financial Bank Building
400 Pine Street, Ste. 600, Abilene, TX 79601
325.672.4000 / 800.588.2525 / f. 325.672.7049
www.dkcpa.com
We have audited the accompanying financial statements of the governmental activities, the business -type activities, the
discretely presented component unit, each major fund, and the aggregate remaining fund information of the Town of Prosper,
Texas (the Town), as of and for the year ended September 30, 2013, and the related notes to the financial statements, which
collectively comprise the Town's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting
principles used and the reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position
of the governmental activities, the business -type activities, the discretely presented component unit, each major fund, and the
aggregate remaining fund information of the Town as of September 30, 2013, and the respective changes in financial position
and, where applicable, cash flows thereof and the budgetary comparison for the general, impact fee and contribution funds for
the year then ended in conformity with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis on pages 3 through 11 be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town's
basic financial statements. The introductory section, individual fund schedules, and statistical section are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The individual fund schedules are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the individual fund schedules are fairly stated in
all material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic
financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Abilene, Texas
March 7, 2014
.e&L0<W sr, a, Pl-
Certified Public Accountants
2
TOWN OF PROSPER, TEXAS
Management Discussion and Analysis
As management of the Town of Prosper, Texas, we offer readers of the Town of Prosper's financial statements this
narrative overview and analysis of the financial activities of the Town of Prosper for the fiscal year ended September
30, 2013.
Financial Highlights
➢ The assets of the Town of Prosper, on a government wide basis, exceeded its liabilities at the close of the most
recent fiscal year by $84,958,228 (net position). Of this amount, $15,515,224 (unrestricted net position) may be
used to meet the government's ongoing obligations to citizens and creditors.
➢ The government's total net position increased by $9,535,072. Most of the increase is due to property taxes, sales
taxes, impact and escrow fees and capital grants and contributions.
➢ As of the close of the current fiscal year, the Town of Prosper's governmental funds reported combined ending
fund balances of $27,546,220 (made up of $7,082,945 in general fund, $6,601,570 in impact fee fund, $1,187,365
in debt service fund, $9,105,051 in capital projects fund and $3,569,289 in other governmental funds), an increase
of $1,561,050 in comparison with the prior year. The increase is primarily due to $7,710,000 in proceeds from
issuance of bonds. $5,201,205 is unassigned and available for spending at the government's discretion.
➢ At the end of the current fiscal year, unassigned fund balance for the general fund was $5,201,205 or 56 percent of
total general fund expenditures and is available for spending at the government's discretion.
➢ The Town's long-term liabilities increased by $7,070,342 during the year due to issuance of the 2013 General
Obligation Refunding Bonds for $3,830,000 and the 2013 Certificates of Obligation for $5,235,000.
➢ The Town's capital assets increased by $16,519,577 primarily due to additional capital projects funded by bond
proceeds.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town of Prosper's basic financial statements.
The Town of Prosper's basic financial statements comprise three components: 1) government -wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other
supplementary information in addition to the basic financial statements themselves.
Government -wide financial statements - The government -wide financial statements are designed to provide readers
with a broad overview of the Town of Prosper's finances, in a manner similar to a private -sector business.
The Statement of Net Position presents information on all of the Town of Prosper's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position may serve as a
useful indicator of whether the financial position of the Town of Prosper is improving or deteriorating.
The Statement of Activities presents information showing how the government's net position changed during the most
recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the time of related cash flows. Thus, revenues and expenses are reported in this statement for
some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused
vacation leave).
Both of the government -wide financial statements distinguish functions of the Town of Prosper that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to
recover all or a significant portion of their costs through user fees and charges (business -type activities). The
governmental activities of the Town of Prosper include general government, public safety, public works, recreation,
and transportation. The business -type activities of the Town of Prosper include the water and sewer system, as well as
sanitation collection and disposal and storm drainage.
The government -wide financial statements include not only the Town of Prosper itself (known as the primary
government), but also a legally separate economic development corporation. Financial information for this component
unit is reported discretely with the financial information presented for the primary government itself. The government -
wide financial statements can be found on pages 12 — 14 of this report.
Fund financial statements - A fund is a grouping of related accounts that is used to maintain control over resources
that have been segregated for specific activities or objectives. The Town of Prosper, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements.
The funds of the Town of Prosper can be divided into two categories: governmental funds and proprietary funds.
Governmental funds - Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the government -wide financial
statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as
well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in
evaluating a government's near -term financing requirements.
Because the focus of governmental funds is more narrow than that of the government -wide financial statements, it is
useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government -wide financial statements. By doing so, readers may better understand the
long-term impact of the government's near -term financing decisions. Both the governmental fund balance sheet and
the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Town of Prosper maintains six governmental funds. Information is presented separately in the governmental fund
balance sheet and statement of revenues, expenditures, and changes in fund balances for the general fund, impact fee
fund, debt service fund, capital projects fund and contributions fund, all of which are considered to be major funds.
The Town of Prosper adopts an annual appropriated budget for its general fund, impact fee fund and contributions
fund. Budgetary comparison statements have been provided for these funds to demonstrate compliance with the
budgets.
The basic governmental fund financial statements can be found on pages 15 - 25 of this report.
Proprietary funds - The Town of Prosper maintains two types of proprietary funds. Enterprise funds are used to
report the same functions presented as business -type activities in the government -wide financial statements. The Town
of Prosper uses enterprise funds to account for its water, sewer, sanitation and storm drainage activities. Proprietary
funds provide the same type of information as the government -wide financial statements, only in more detail.
Budgetary comparison statements for the enterprise funds can be found on pages 47 - 48 of this report.
The internal service fund is used to accumulate and allocate costs internally among the Town's various functions. The
Town uses its internal service fund to account for its employee medical reimbursement program. Because these
services predominately benefit the governmental rather than the business -type functions, they have been included
within governmental activities in the government -wide financial statements.
The basic proprietary fund financial statements can be found on pages 26 - 29.
Notes to the financial statements - The notes provide additional information that is essential to a full understanding of
the data provided in the government -wide and fund financial statements. The notes to the financial statements can be
found on pages 30 - 46 of this report.
4
Government -wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the Town of Prosper, assets exceeded liabilities by $84,958,228 at the close of the most recent fiscal year.
A portion of the Town of Prosper's net position (70 percent) reflects its investment in capital assets (e.g., land,
buildings, machinery, and equipment), less any related debt used to acquire those assets that are still outstanding. The
Town of Prosper uses these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. Although the Town of Prosper's investment in its capital assets is reported net of related debt, it
should be noted that the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
An additional portion of the Town of Prosper's net position (12 percent) represents resources that are subject to
external restrictions on how they may be used. The remaining balance of unrestricted net position (18 percent) may be
used to meet the government's ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Town of Prosper is able to report positive balances in all categories of net
position, both for the government as a whole, as well as for its separate governmental and business -type activities.
Current and other assets
Capital assets
Total assets
Deferred charge for debt
Town of Prosper's Net Position
Government -Wide
(In thousand dollars)
Governmental
Activities
(Restated)
2013 2012
$ 29,615 $ 27,156 $
68,277 60,930
97,892 88,086
Business -type
Activities
(Restated)
2013 2012
18,318 $ 15,214 $
27,988 18,815
46,306 34,029
Total
2013
2012
47,933 $
42,370
96,265
79,745
144,198
122,115
refunding
10
(10)
28
42
38
32
Total outflows of resources
Long term liabilities
28,936
26,320
23,299
18,843
52,235
45,163
Other liabilities
1,983
1,163
5,060
398
7,043
1,561
Total liabilities
30,919
27,483
28,359
19,241
59,278
46,724
Net position:
Invested in capital assets,
net of related debt
46,918
41,313
12,643
5,740
59,561
47,053
Restricted
9,882
10,848
-
-
9,882
10,848
Unrestricted
10,183
8,432
5,332
9,090
15,515
17,522
Total net position $
66,983 $
60,593 $
17,975 $
14,830 $
84,958 $
75,423
5
Town of Prosper's Changes in Net Position
Government -wide
(In thousand dollars)
Governmental Business -type
Activities Activities Total
(Restated) (Restated)
2013 2012 2013 2012 2013 2012
Revenues:
Program revenues:
Charges for services $
2,564 $
2,304 $
9,099 $
8,022 $
11,663 $
10,326
Operating grants & contributions
93
265
93
265
Capital grants & contributions
5,716
5,356
5,716
5,356
General revenues:
Property taxes
7,314
6,392
7,314
6,392
Other taxes
2,998
2,447
2,998
2,447
Other income
749
1,655
266
156
1,015
1,811
Total revenues
19,434
18,419
9,365
8,178
28,799
26,597
Expenses:
General government
1,658
1,712
1,658
1,712
Police
1,477
1,197
1,477
1,197
Dispatch
667
657
667
657
Court
307
237
307
237
Fire
2,601
2,250
2,601
2,250
Streets
1,825
1,616
1,825
1,616
Parks and recreation
1,799
1,462
1,799
1,462
Library
87
85
87
85
Engineering
208
144
208
144
Code enforcement
569
453
569
453
Inspections
160
149
160
149
Planning
295
326
295
326
Interest on long-term debt
1,318
1,109
1,318
1,109
Utility
6,293
5,476
6,293
5,476
Total expenses
12,971
11,397
6,293
5,476
19,264
16,873
Transfers
(73)
352
73
(352)
-
-
Change in net position
6,390
7,374
3,145
2,350
9,535
9,724
Net position - beginning of year,
restated
60,593
53,219
14,830
12,480
75,423
65,699
Net position - end of year $
66,983 $
60,593 $
17,975 $
14,830 $
84,958 $
75,423
rol
The following key elements influenced the changes in net position from the prior year:
Revenues for FY 2012-13 increased by $2,202,025 or 9 percent in comparison to FY 2011-12. The increase is
primarily due to increases in charges for services and property taxes. Charges for services increased $1,337,658 over
prior year. Property taxes increased $921,746 from prior year.
The majority of the revenues from charges for services were derived from the Enterprise Fund water and sewer
services provided to residents of the Town of Prosper.
Governmental Activities
Governmental activities increased the Town of Prosper's net position by $6,389,568.
• Impact fee collections increased by $767,892 (38 percent) and other capital contributions increased by $609,632
(118 percent), primarily due to planned real estate development. Impact fees are included as part of capital
contribution revenues.
• Total governmental activity expenses increased by $1,574,276 (14 percent) during the year primarily due to an
increase in public safety of $630,674, an increase in parks and recreation of $337,575, and an increase in streets of
$208,898.
Business-tvue Activities
Business -type activities increased the Town of Prosper's net position by $3,145,504.
• Operating revenue increased $1,092,678 (13 percent) mainly due to increased water sales.
• Operating expenses increased by $713,303 (15 percent) from the previous year due to an increase in contractual
services.
Financial Analysis of the Government's Funds
As noted earlier, the Town of Prosper uses fund accounting to ensure and demonstrate compliance with finance -related
legal requirements.
Governmental funds - The focus of the Town of Prosper's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Town of Prosper's
financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net
resources available at the end of the fiscal year.
At the end of the current fiscal year, the Town of Prosper's governmental funds reported combined ending fund balances
of $27,546,220, an increase of $1,561,050 from the prior year. Most of the increase is due to increase in property and
sales taxes, impact fees and other developer contributions, and proceeds from bond issuance during the year. Of the
current combined ending fund balance, $26,977 is nonspendable due to prepaids, $18,986,188 is restricted for debt
service and capital projects, $1,855,162 is committed for contingency in accordance with the Town charter, $1,476,688
is assigned for specific purpose such as impact fees and other specific purposes, and $5,201,205 is unassigned.
The general fund is the chief operating fund of the Town of Prosper. At the end of the current fiscal year, unassigned
fund balance of the general fund was $5,201,205. Total unassigned fund balance represents 56 percent of total general
fund expenditures. The increase in fund balance of $2,601 is primarily due to increases in property and sales tax,
licenses and permits, and fines, fees, warrants and seizures, offset by transfers out for cash financing of capital projects.
The impact fee fund has a total fund balance of $6,601,570, which is restricted for capital projects. The decrease in fund
balance of $1,187,021 is due to current year impact fee expenditures and transfers out exceeding impact fee revenues
during the year.
The debt service fund has a total fund balance of $1,187,365, all of which is restricted for payment of debt service. The
increase in fund balance of $297,733 is primarily due to property tax revenues exceeding bond payments during the year.
The capital projects fund has a total fund balance of $9,105,051, all of which is restricted for construction. The increase
in fund balance of $2,225,335 is primarily due to the issuance of certificates of obligation in the amount of $3,880,000.
The contributions fund has a total fund balance of $2,092,061, which is restricted for capital projects. The decrease in
fund balance of $83,088 is due to current year expenditures and transfers out exceeding contribution revenues during the
year.
Proprietary funds. The Town of Prosper's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
Unrestricted net position of the water and sewer fund at the end of the year amounted to $5,109,484. The total increase in
net position of the water and sewer fund was $3,158,187. The factors concerning the finances of this fund have already
been addressed in the discussion of the Town of Prosper's business type activities.
General Fund Budgetary Highlights
During the year, revenues were $1,065,211 more than estimated and expenditures were $576,843 less than budgeted.
The majority of the excess revenues were in fines and fees, licenses and permits, and miscellaneous. The majority of
expenditure savings was in streets, followed by parks and recreation, fire, court, and capital outlay. The original budget
included no change in fund balance for FY 2013. Amendments to the general fund budget, including approximately $2.2
million for cash financing of capital projects, resulted in a budgeted decrease to fund balance of $1,665,107. With the
variances noted above, the actual increase to fund balance was $2,601.
Capital Asset and Debt Administration
Capital assets. The Town of Prosper's investment in capital assets for its governmental and business -type activities as of
September 30, 2013 is $96,265,007 (net of accumulated depreciation). This investment in capital assets includes land,
buildings and systems, and equipment.
Major capital asset events during the current fiscal year included the following:
• Capital asset acquisitions in governmental activities totaled $9,773,234. The majority of this activity was funded
from bond proceeds and was for streets, parks, and related infrastructure.
• Capital asset additions in business -type activities totaled $9,792,786. The majority of this activity was funded from
bond proceeds and was for new water and sewer projects.
Governmental
Business -type
Activities
Activities
Total
(Restated)
(Restated)
2013 2012
2013 2012
2013
2012
Government -wide capital assets:
Non -depreciable assets $
13,313 $ 13,892 $
10,778 $ 1,073 $
24,091 $
14,965
Depreciable assets
65,934 55,616
21,959 21,871
87,893
77,487
Total capital assets
79,247 69,508
32,737 22,944
111,984
92,452
Less accumulated depreciation
Govemment-wide capital
assets, net
(10,970) (8,578) (4,749) (4,129) (15,719) (12,707)
$ 68,277 $ 60,930 $ 27,988 $ 18,815 $ 96,265 $ 79,745
Additional information on the Town of Prosper's capital assets can be found in Note 5 on pages 37 - 38 of this report.
8
Long-term debt. At the end of the current fiscal year, the Town of Prosper had bonded debt outstanding of $49,449,300.
This amount comprises debt backed by the full faith and credit of the government.
The Town of Prosper's bond ratings are AA as assigned by Standard & Poor's on February 6, 2014 and Aa2 as assigned
by Moody's on February 10, 2014.
Total long-term debt consisted of the following:
Governmental
Business -type
Activities
Activities
Total
2013 2012
2013 2012
2013
2012
Government -wide long-term debt:
Certificates of obligation
$ 26,746 $ 23,972 $
22,703 $ 18,447 $
49,449 $
42,419
Taxnotes payable
1,425 1,765
1,425
1,765
Compensated absences payable
386 349
49 45
435
394
Total government -wide long-term
debt
$ 28,557 $ 26,086 $
22,752 $ 18,492 $
51,309 $
44,578
Additional information on the Town of Prosper's long-term debt can be found in note 8 on pages 40 - 42 of this report.
Economic Factors and Next Year's Budgets and Rates
The Town has continued to thrive relative to many markets despite the economic instability and stagnant
economic growth both regionally and nationally.
The Fiscal Year 2013-2014 adopted budget accomplishes Town Council goals to expand services and
competitively compensate staff while holding the line on the tax rate. The Town's adopted budget attempts to
address the current and future growth and infrastructure expansion demands while recognizing the needs of our
Citizens.
Revenue Proiection Hi2hli2hts
Despite the Town's current and future growth potential and general optimism, this budget has been prepared with
conservative revenue assumptions in mind.
• The adopted Ad Valorem Property Tax Rate in the coming fiscal year is equal to last year's rate and is
set at $0.52 per one hundred dollars taxable valuation. Certified property valuations increased by
$194,145,639 (15.5%) for FY 2013-2014. Property values increased from $1,253,320,576 to
$1,447,466,215. Most of the increase came from new construction, accounting for $118,813,678. Most
of the Town's current values come from Collin County properties, but the Denton County portion is
expected to have new developments in the near future.
• Sales tax revenue is projected to reach $2,736,900, compared to FY 2013's actual amount of $2,478,039.
Growth in new business and a general increase in existing retail sales are expected in FY 2014, just as in
FY 2013.
• Building Permit Revenues are expected to increase to $1,554,300 or 22% when compared to the Fiscal
Year 2012-2013 Adopted Budget of $1,275,000. The Town expects to issue 525 or more new residential
permits in the coming year.
• Municipal Court Fines, Licenses and Franchise Fees are projected to rise slightly with population.
• Revenues for the Water, Sewer and Solid Waste Fund are expected to increase to $8,975,450, including
an adopted rate structure design change from FY 2013, to cover increasing raw water costs and fund
growing utility operations. The adopted business plan for the Water and Sewer Utility Fund identifies
the need for revenue enhancements to cover existing and future operations and maintenance costs, as
well as debt service and contracted sewer costs with the Upper Trinity Regional Water District.
9
• Under the solid waste agreement approved by Town Council, IESI (now Progressive Waste Solutions)
increased rates five percent effective February 2012. Under this agreement, IESI will not increase rates
for three years. The last rate increase to solid waste rates for Prosper residents was February 2009. Staff
is pleased to once again offer some multi -year rate stability on this service.
Appropriation Budeet Hiehliehts
The adopted appropriation budget addresses increased service levels in response to continued growth, provides
required or money -saving capital investments in infrastructure, and includes other public improvements as well as
additional public safety resources.
Program Enhancement and Capital Expenditures included in the adopted appropriations and planned for the 2013-
2014 Fiscal Year by Division are as follows:
Administration
The Town budgeted money to lease a modular building for Finance and Human Resources staff, allowing the
Town Manager's Office to relocate to Town Hall from borrowed space in the Prosper Economic Development
Corporation offices. Ultimately the Town plans to select an architect to design a new, larger Town Hall and begin
construction in two years.
During FY 2013 the Town formally established a Purchasing function with the hiring of a Purchasing Manager.
Community Library
The cost for Librarian Services with the City of Celina is included in the adopted budget. During early FY 2014
the Town amended the budget to include a 30-hour per week Library Director. This position meets State Library
System accreditation standards and allows the library to remain eligible for Collin County library funding.
Police Operations & Dispatch
Three replacement vehicles are included in the Police Department budget.
Fire, EMS & Fire Marshall
The part-time Fire Chief became a full-time Town of Prosper Fire Chief during FY 2013. In November 2013 the Town
selected an architectural firm to design the Town's second fire station. Construction is expected to begin in 2014.
Streets
The Streets department budget includes money for school zone flashers, State Highway 289 (Preston Road) stamp
and stain plus irrigation conduits, decorative monument signs, and downtown enhancements.
Development Services
Updating of the Town subdivision ordinance is included in the budget. In Parks and Recreation, the budget
includes updating of the parks master plan, improvements to Frontier Park, and maintenance capital
improvements.
Water/Wastewater Utility
The adopted budget adds funding for a backhoe, skid steer equipment, mower, generator, GIS Work Order
System, and modular Public Works building.
10
The following items also have been incorporated into the Adopted Fiscal Year 2013-2014 Budget:
FY 2012-2013 was the final year of the multi -year strategy to bring Prosper's compensation in line with
the market. Time in position pay adjustments were implemented, moving more experienced employees
further into the pay range. All employees, except those with less than six months at Prosper, were
scheduled to receive at least a 1.5% increase. The FY 2013-2014 proposed budget contains a merit/pay
for performance opportunity for employees. They will be eligible to receive up to a 3% increase to their
base salary. The proposal is consistent with the proposed compensation adjustments for many
municipalities in the Metroplex. The total financial impact to the Town for the compensation revisions is
$141,183. The Town will need to solidify a new multi -year compensation strategy in preparation for the
FY 2014-2015 budget.
• The TMRS rate budgeted for FY 2014 is 10.74%, which is equal to the Annual Required Contribution
(ARC) Rate required by GASB Statement Number 27.
• The Town is offering two medical plan options with two methods of payment: PPO Core (Preferred
Provider Organization) and HDHP (High Deductible Health Plan). Overall, the Town's medical benefits
remain competitive in today's market.
• Design work is underway on the Town's second fire station, Windsong Ranch Fire Station in the western
part of Prosper. Staffing, debt service, and operations & maintenance are projected to total $1,941,862.
The Town needs to develop a multi -year strategy to pay for the one-time and recurring costs.
• During FY 2014, the Town refunded $7,480,000 of its 2004 series bonds and issued $13,100,000 in
certificates of obligation for the Town's share of the upcoming Doe Branch Water Reclamation Plant, to
be built and operated by the Upper Trinity Regional Water District. The impact on the tax rate and
wastewater rate will be felt in FY 2015.
• Continued partnerships with other entities have produced multiple saving opportunities for shared
services or improving our customer service to residents and visitors alike. The Town continues to
operate the Community Library in the Reynolds Middle School. The Town renewed its agreements
along with several area cities to contract with Collin County for Animal Control and Sheltering Service.
The Town has several agreements with Frisco including using Frisco GIS for our departments and
Interlocal agreements for part-time help in both the Municipal Court and Dispatch as needed.
All these factors were considered in preparing the Town of Prosper's Budget for the 2013-2014 Fiscal Year.
Request for Information
This financial report is designed to provide a general overview of the Town of Prosper's finances for all those with an
interest in the government's finances. Questions concerning any of the information provided in this report or requests for
additional financial information should be addressed to the Office of the Town Manager, P. O. Box 307, Prosper, Texas
75078.
11
TOWN OF PROSPER, TEXAS
Statement of Net Position
September 30, 2013
Primary Government
Governmental Business -Type
Activities Activities
ASSETS
Cash and cash equivalents $
5,240,226 $
Investments
6,380,241
Taxes receivable, net
526,303
Receivables, net
371,998
Due from component unit
194,626
Prepaid
26,977
Inventory
Internal balances
661,968
Restricted cash and investments
16,212,470
Capital assets:
Land and construction in progress
13,313,110
Other capital assets, net
54,964,108
Total assets
97,892,027
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges for refunding
9,874
Total outflows of resources
9,874
LIABILITIES
Accounts payable
1,808,387
Accrued interest
153,790
Customer deposits and escrow payable
20,902
Due to primary government
Noncurrent liabilities:
Due within one year
1,770,563
Due in more than one year
27,165,062
Total liabilities
30,918,704
NET POSITION
Net investment in capital assets
46,918,373
Restricted for:
Debt service
1,187,365
Capital projects
8,694,171
Unrestricted
10,183,288
Total net position $
66,983,197 $
2,048,811 $
4,107,097
921,280
2,300
49,805
(661,968)
11,850,395
10,777,414
17,210,375
46,305,509
27,913
27,913
977,944
108,356
3,973,607
1,221,795
22,076,689
28,358,391
12,643,095
5,331,936
17,975,031 $
Total
7,289,037 $
10,487,338
526,303
1,293,278
194,626
29,277
49,805
28,062,865
24,090,524
72,174,483
144,197,536
37,787
37,787
2,786,331
262,146
3,994,509
2,992,358
49,241,751
59,277,095
59,561,468
1,187,365
8,694,171
15,515,224
84,958,228 $
The accompanying notes are an integral part of these financial statements.
12
Component
Unit
Prosper Economic
Development
Corporation
2,113,779
2,515
154,214
2,527
2,273,035
5,627
194,626
10,699
210,952
2,062,083
2,062,083
TOWN OF PROSPER, TEXAS
Statement of Activities
For the Year Ended September 30, 2013
Program Revenues
Operating
Capital
Charges for
Grants and
Grants and
Expenses
Services
Contributions
Contributions
Primary Government
Governmental activities
General government
$ 1,657,968 $
330,513
$ 9,612 $
468,725
Police
1,476,972
30,619
21,119
Dispatch
666,610
Court
306,779
151,937
2,416
Fire
2,600,901
168,945
41,404
Streets
1,825,205
4,630,376
Parks and recreation
1,799,314
2,490
617,331
Library
87,047
18,087
Engineering
208,390
Inspections
569,049
1,784,263
Code enforcement
159,160
5,650
Planning
294,749
89,543
Interest and fiscal charges
1,318,382
Total governmental activities
12,970,526
2,563,960
92,638
5,716,432
Business -type activities
Water and sewer
6,094,580
8,875,285
Storm drainage
198,178
223,691
Total business -type activities
6,292,758
9,098,976
-
-
Total Primary Government
$ 19,263,284 $
11,662,936
$ 92,638 $
5,716,432
Component Unit
Economic development
1,179,702
Total component unit
$ 1,179,702 $
$ $
General Revenues and Transfers
Property taxes
Sales and use taxes
Franchise taxes
Unrestricted investment earnings
Miscellaneous revenue
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning (restated)
Net position - ending
The accompanying notes are an integral part of these financial statements.
13
Net (Expense) Revenue and Changes in Net Position
Component
Primary Government
Unit
Prosper Economic
Governmental
Business -type
Development
Activities
Activities
Total
Corporation
(849,118) $
$
(849,118)
(1,425,234)
(1,425,234)
(666,610)
(666,610)
(152,426)
(152,426)
(2,390,552)
(2,390,552)
2,805,171
2,805,171
(1,179,493)
(1,179,493)
(68,960)
(68,960)
(208,390)
(208,390)
1,215,214
1,215,214
(153,510)
(153,510)
(205,206)
(205,206)
(1,318,382)
(1,318,382)
(4,597,496)
-
(4,597,496)
2,780,705
2,780,705
25,513
25,513
-
2,806,218
2,806,218
(4,597,496)
2,806,218
(1,791,278)
$
(1,179,702)
(1,179,702)
7,313,572
7,313,572
2,478,039
2,478,039
823,710
519,962
519,962
166,776
175,062
341,838
21,559
581,802
91,137
672,939
31
(73,087)
73,087
-
10,987,064
339,286
11,326,350
845,300
6,389,568
3,145,504
9,535,072
(334,402)
60,593,629
14,829,527
75,423,156
2,396,485
66,983,197 $
17,975,031 $
84,958,228 $
2,062,083
14
TOWN OF PROSPER, TEXAS
Balance Sheet - Governmental Funds
September 30, 2013
Impact
Debt
General
Fee
Service
Fund
Fund
Fund
ASSETS
Cash and cash equivalents
$
4,825,540
$
$
Investments
5,227,137
Taxes receivable (net)
507,288
19,015
Accounts receivable (net)
163,452
200,000
348
Due from other funds
110,826
773,835
Due from component unit
255,900
Prepaid
26,578
Restricted cash and investments
6,300,926
1,187,017
Total Assets
$
10,860,821
$
7,530,661
$
1,206,380
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCE
Liabilities
Accounts payable and accrued expenses
$
419,773
$
37,891
$
Escrow payable
Due to other funds
3,166,911
891,200
Due to component unit
62,867
Total Liabilities
3,649,551
929,091
-
Deferred Inflows of Resources
Unavailable revenue
Property taxes
44,587
19,015
Fines and fees
83,738
Total Deferred Inflows of Resources
128,325
-
19,015
Fund Balance
Nonspendable for:
Prepaid
26,578
Restricted for:
Debt service
1,187,365
Capital projects
6,601,570
Committed for:
Contingency
1,855,162
Assigned
Unassigned
5,201,205
Total Fund Balances
7,082,945
6,601,570
1,187,365
Total Liabilities, Deferred Inflows of
Resources and Fund Balance
$
10,860,821
$
7,530,661
$
1,206,380
The accompanying notes are an integral part of these financial statements
15
Capital
Nomnajor
Total
Projects
Contributions
Governmental
Governmental
Funds
Fund
Fund
Funds
$ $
$
226,607 $
5,052,147
1,153,104
6,380,241
526,303
3,198
366,998
2,218,515
1,464,703
112,578
4,680,457
255,900
399
26,977
7,913,626
810,901
16,212,470
$ 10,132,141 $
2,279,201 $
1,492,289 $
33,501,493
$ 1,023,249 $ 165,698 $ 15,601 $ 1,662,212
20,902 20,902
3,841 4,061,952
62,867
1,027,090 186,600 15,601 5,807,933
9,105,051
63,602
83,738
147,340
399 26,977
1,187,365
2,092,202 17,798,823
1,855,162
1,476,688 1,476,688
5,201,205
9,105,051 2,092,601 1,476,688 27,546,220
$ 10,132,141 $ 2,279,201 $ 1,492,289 $ 33,501,493
16
TOWN OF PROSPER, TEXAS
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Position
September 30, 2013
Total Fund Balances - Governmental Funds $ 27,546,220
Amounts reported for governmental activities in the statement of net position (page 12) are different because:
Capital assets used in governmental activities are not current financial resources and therefore
are not reported in the governmental funds balance sheet.
Bonds payable will not be liquidated with current financial resources and therefore have not
been included in the fund financial statements.
Accrued liabilities for compensated absences will not be liquidated with current financial
resources and therefore have not been included in the fund financial statements.
Interest payable on long-term debt is accrued in the government -wide financial statements,
whereas in the fund financial statements, interest expenditures are reported when due.
Premiums ($378,699) on bond issuances less deferred losses on bond refunding of ($9,874) are
recorded as other financing sources and uses when paid in the fund financial statements but are
capitalized and amortized in the government -wide financial statements over the life of the
bonds.
Receivables from property taxes and fines and fees are not available soon enough to pay for the
current period's expenditures and are, therefore, deferred in the funds.
The Town uses an internal service fund to charge the costs of the medical reimbursement
program to appropriate departments in other funds. The assets and liabilities of the insurance
fund are included in governmental activities in the statement of net position. The net effect is to
increase net position.
Net Position of Governmental Activities
The accompanying notes are an integral part of these financial statements
68,277,218
(28,171,300)
(385,626)
(153,790)
(368,825)
147,340
91,960
$ 66,983,197
17
TOWN OF PROSPER, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
For the Year Ended September 30, 2013
Impact
Debt
General
Fee
Service
Fund
Fund
Fund
REVENUES
Taxes:
Property $
4,400,687 $
$
2,822,124
Sales
2,478,039
Franchise
519,962
Licenses and permits
1,751,796
Charges for services
165,195
Intergovernmental
Impact fees
2,808,778
Escrow income
Grants
49,363
Investment income
92,129
34,939
21,093
Fines, fees, warrants and seizures
645,500
Contributions
Miscellaneous
569,632
Total Revenues
10,672,303
2,843,717
2,843,217
EXPENDITURES
Current:
General government
1,491,595
Police
1,398,108
Dispatch
559,486
Court
116,149
Fire
2,364,988
Streets
357,514
166,066
Parks and recreation
981,245
Library
87,047
Engineering
208,390
Inspection
564,118
Code enforcement
159,160
Planning
293,267
Capital outlay
694,744
22,472
Debt service:
Principal
1,395,650
Interest and fiscal charges
1,153 160
Bond issue costs and fees
111,195
Total Expenditures
9,275,811
188,538
2,660,005
Excess (Deficiency) of Revenue over Expenditures $
1,396,492 $
2,655,179 $
183,212
The accompanying notes are an integral part of these financial statements
18
Capital Nonmajor
Projects Contributions Governmental
Funds Fund Fund
1,729,787
14,686
468,725
2,213,198
129,148
8,882,101
46,815
9,058,064
(6,844,866) $
91,811
1,213
1,469
43,275
137,768
15,835
190,405
7,308
7,308
220,856
(83,088) $
1,854
617,331
619,185
90,933
173,917
264,850
354,335 $
Total
Governmental
Funds
7,222,811
2,478,039
519,962
1,751,796
165,195
1,729,787
2,808,778
91,811
49,363
165,914
646,969
1,129,331
569,632
19,329,388
1,620,743
1,413,943
559,486
306,554
2,372,296
523,580
1,079,486
87,047
208,390
564,118
159,160
293,267
9,773,234
1,395,650
1,153,160
158,010
21,668,124
(2,338,736)
19
TOWN OF PROSPER, TEXAS
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
For the Year Ended September 30, 2013
Impact
General Fee
Fund Fund
OTHER FINANCING SOURCES (USES)
Proceeds from insurance $ 11,765 $ $
Issuance of debt
Premium on issuance of bonds
Payments to bond escrow agent
Transfer in 827,344
Transfer out (2,233,000) (3,842,200)
Total Other Financing Sources (Uses) (1,393,891) (3,842,200)
Net change in fund balances 2,601 (1,187,021)
Fund balances, beginning 7,080,344 7,788,591
Fund balances, ending $ 7,082,945 $ 6,601,570 $
The accompanying notes are an integral part of these financial statements
Debt
Service
Fund
3,830,000
168,875
(3,898,607)
14,253
114,521
297,733
889,632
1,187,365
20
Capital
Nonmajor
Total
Projects
Contributions
Governmental
Governmental
Funds
Fund
Fund
Funds
$
$
$
11,765
3,880,000
7,710,000
168,875
(3,898,607)
5,215,845
6,057,442
(25,644)
(48,845)
(6,149,689)
9,070,201
-
(48,845)
3,899,786
2,225,335
(83,088)
305,490
1,561,050
6,879,716
2,175,689
1,171,198
25,985,170
9,105,051 $
2,092,601 $
1,476,688 $
27,546,220
21
TOWN OF PROSPER, TEXAS
Reconciliation of Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2013
Net Change in Fund Balances - Governmental Funds
Amounts reported for governmental activities in the statement of activities (pages 13 - 14)
are different because:
Governmental funds report capital outlays as expenditures. However, in the statement of activities
the cost of those assets is allocated over their estimated useful lives and reported as depreciation
expense. This is the amount by which capital outlay ($9,773,234) is exceeded by depreciation
expense ($2,426,510).
Principal payments on bonds payable of $1,395,650 and refunded bonds of $3,880,000 are
expenditures in the fund financial statements but are shown as reductions in long-term debt in the
government -wide financial statements.
Deferred losses on refunding and premiums are amortized over the life of the bonds in the
government -wide financial statements.
Proceeds from issuance of bonds are recorded as other financing sources in the fund financial
statements but increases liabilities in the government -wide financial statements.
Additions to liabilities for compensated absences are not shown in the fund financial statements.
The net effect of the current year's increase is to decrease net position.
Interest payable on long-term debt is accrued in the government -wide financial statements, whereas
in the fund financial statements, interest expenditures are reported when due. The increase in
interest accrual decreases net position.
The Town uses an internal service fund to charge the costs of the medical reimbursement program to
the appropriate departments in other funds. The change in net position of the insurance fund is
reported with governmental activities.
Revenues from property taxes and fines are deferred in the fund financial statements until they are
considered available to fund current expenditures, but such revenues are recognized in the
government -wide statements. The effect of recognizing deferred tax and fines revenue of $147,340
and removing prior year's deferred tax recognized of $56,579 is to increase net position.
Change in Net Position of Governmental Activities
The accompanying notes are an integral part of these financial statements
$ 1,561,050
7,346,724
5,275,650
(124,140)
(7,710,000)
(36,984)
(7,212)
(6,281)
90,761
$ 6,389,568
22
TOWN OF PROSPER, TEXAS
Statement of Revenues, Expenditures and Changes in Fund Balance -
Budget (GAAP Basis) and Actual - General Fund
For the Year Ended September 30, 2013
Variance
General Fund
With Final
Budget
Original
Final
Actual
Positive
Budget
Budget
Amounts
(Negative)
REVENUES:
Taxes
Property $
4,309,802 $
4,337,802 $
4,400,687 $
62,885
Sales
1,404,500
2,487,500
2,478,039
(9,461)
Franchise
434,500
441,000
519,962
78,962
Licenses and permits
1,400,000
1,631,800
1,751,796
119,996
Charges for services
187,000
184,000
165,195
(18,805)
Grants
30,250
49,587
49,363
(224)
Investment income
60,100
60,130
92,129
31,999
Fines, fees, warrants and seizures
500,525
345,300
645,500
300,200
Miscellaneous
34,250
69,973
569,632
499,659
Total Revenues
8,360,927
9,607,092
10,672,303
1,065,211
EXPENDITURES:
General government
1,535,477
1,521,410
1,491,595
29,815
Police
1,529,755
1,394,821
1,398,108
(3,287)
Dispatch
635,680
549,692
559,486
(9,794)
Court
234,730
202,356
116,149
86,207
Fire
2,487,308
2,454,933
2,364,988
89,945
Streets
387,944
532,497
357,514
174,983
Parks and recreation
833,675
1,075,342
981,245
94,097
Library
94,895
95,925
87,047
8,878
Inspections
582,195
574,816
564,118
10,698
Code enforcement
169,370
164,596
159,160
5,436
Planning
333,823
297,776
293,267
4,509
Engineering
157,575
219,377
208,390
10,987
Capital outlay
163,200
769,113
694,744
74,369
Total Expenditures
9,145,627
9,852,654
9,275,811
576,843
Excess of revenues over expenditures
(784,700)
(245,562)
1,396,492
1,642,054
OTHER FINANCING SOURCES (USES):
Proceeds from insurance
11,755
11,765
10
Transfers in
801,700
801,700
827,344
25,644
Transfers out
(17,000)
(2,233,000)
(2,233,000)
-
Total other financing sources (uses)
784,700
(1,419,545)
(1,393,891)
25,654
Change in fund balances
-
(1,665,107)
2,601
1,667,708
Fund balances, beginning
7,080,344
7,080,344
7,080,344
-
Fund balances, ending $
7,080,344 $
5,415,237 $
7,082,945 $
1,667,708
The accompanying notes are an integral part of these financial statements
23
TOWN OF PROSPER, TEXAS
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget (GAAP Basis) and Actual - Impact Fee Fund
For the Year Ended September 30, 2013
REVENUES:
Impact fees
Investment income
Total revenues
EXPENDITURES:
Streets
Capital outlay
Total expenditures
Excess of revenues over expenditures
OTHER FINANCING SOURCES (USES)
Transfers out
Total other financing sources (uses)
Change in fund balances
Fund balances, beginning
Fund balances, ending
Variance
Impact Fee Fund
With Final
Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
$ 2,600,000
$ 2,051,997 $
2,808,778 $
756,781
20,000
28,100
34,939
6,839
2,620,000
2,080,097
2,843,717
763,620
1,535,000
329,900
166,066
163,834
4,628,000
-
22,472
(22,472)
6,163,000
329,900
188,538
141,362
(3,543,000)
1,750,197
2,655,179
904,982
(2,951,000)
(3,842,200)
(891,200)
-
(2,951,000)
(3,842,200)
(891,200)
(3,543,000)
(1,200,803)
(1,187,021)
13,782
7,788,591
7,788,591
7,788,591
$ 4,245,591
$ 6,587,788 $
6,601,570 $
13,782
The accompanying notes are an integral part of these financial statements.
24
TOWN OF PROSPER, TEXAS
Statement of Revenues, Expenditures and Changes in Fund Balances -
Budget (GAAP Basis) and Actual - Contributions Fund
For the Year Ended September 30, 2013
Variance
Contributions Fund
With Final
Budget
Original
Final
Positive
Budget
Budget
Actual
(Negative)
REVENUES:
Escrow income
$ -
$ 4,007,900 $
91,811 $
(3,916,089)
Investment income
-
-
1,213
1,213
Fines, fees, warrants and seizures
500
600
1,469
869
Contributions
51,900
43,000
43,275
275
Total revenues
52,400
4,051,500
137,768
(3,913,732)
EXPENDITURES:
Police
10,500
17,244
15,835
1,409
Court
30,700
4,961,587
190,405
4,771,182
Fire
8,000
6,850
7,308
(458)
Parks and recreation
10,000
9,000
7,308
1,692
Total expenditures
59,200
4,994,681
220,856
4,773,825
Change in fund balances
(6,800)
(943,181)
(83,088)
860,093
Fund balances, beginning
2,175,689
2,175,689
2,175,689
-
Fund balances, ending
$ 2,168,889
$ 1,232,508 $
2,092,601 $
860,093
The accompanying notes are an integral part of these financial statements.
25
TOWN OF PROSPER, TEXAS
Statement of Net Position - Proprietary Funds
September 30, 2013
Governmental
Enterprise Funds
Activities -
Water
Other
Total
Internal
and Sewer
Nonmajor
Enterprise
Service
Fund
Enterprise Fund
Funds
Fund
ASSETS
Current Assets:
Cash and cash equivalents
$ 1,801,479
$ 247,332 $
2,048,811 $
188,079
Investments
4,107,097
-
4,107,097
Receivables (net)
893,486
27,794
921,280
5,000
Due from other funds
914,896
-
914,896
53,082
Due from component unit
-
-
-
1,593
Prepaid
2,300
-
2,300
Inventory
49,805
-
49,805
Restricted cash and cash equivalents
11,850,395
-
11,850,395
Total Current Assets
19,619,458
275,126
19,894,584
247,754
Noncurrent Assets:
Capital assets
Nondepreciable
10,777,414
-
10,777,414
Depreciable, net
17,187,466
22,909
17,210,375
Total Noncurrent Assets
27,964,880
22,909
27,987,789
-
Total Assets
47,584,338
298,035
47,882,373
247,754
DEFERRED OUTFLOWS OF RESOURCES
Deferred charges for refunding
27,913
-
27,913
Total Outflows of Resources
27,913
-
27,913
-
LIABILITIES
Current Liabilities:
Accounts payable and accrued expenses
928,038
49,906
977,944
146,175
Deposits and funds held in escrow
3,973,607
-
3,973,607
Due to other funds
1,574,096
2,768
1,576,864
9,619
Accrued interest
108,356
-
108,356
Current portion of long-term liabilities
Compensated absences
24,545
24,545
Bonds payable
1,197,250
-
1,197,250
Total Current Liabilities
7,805,892
52,674
7,858,566
155,794
Noncurrent Liabilities:
Compensated absences
24,544
-
24,544
Bonds payable
22,052,145
-
22,052,145
Total Noncurrent Liabilities
22,076,689
-
22,076,689
-
Total Liabilities
29,882,581
52,674
29,935,255
155,794
NET POSITION
Net investment in capital assets
12,620,186
22,909
12,643,095
Unrestricted
5,109,484
222,452
5,331,936
91,960
Total Net Position $
17,729,670 $
245,361 $
17,975,031 $
91,960
The accompanying notes are an integral part
of these financial
statements
26
TOWN OF PROSPER, TEXAS
Statement of Revenues, Expenses and Changes
In Fund Net Position - Proprietary Funds
For the Year Ended September 30, 2013
Governmental
Enterprise Funds
Activities -
Water
Other
Total
Internal
and Sewer
Nonmajor
Enterprise
Service
Fund
Enterprise Fund
Funds
Fund
OPERATING REVENUE
Water and sewer charges $
7,371,604
$ $
7,371,604 $
Sanitation charges
891,160
-
891,160
Storm drainage utility fees
223,691
223,691
Water and sewer connections
559,186
-
559,186
Service initiation
53,335
-
53,335
Insurance charges for services
-
-
21,810
Miscellaneous
91,137
-
91,137
405
Total Operating Revenue
8,966,422
223,691
9,190,113
22,215
OPERATING EXPENSES
Personnel services
845,725
28,229
873,954
Materials and supplies
245,047
13,377
258,424
Contractual services
3,734,035
74,234
3,808,269
48,518
Depreciation
616,513
3,420
619,933
Total Operating Expenses
5,441,320
119,260
5,560,580
48,518
Operating Income
3,525,102
104,431
3,629,533
(26,303)
NON -OPERATING REVENUES (EXPENSES)
Interest income
172,718
2,344
175,062
862
Interest expense
(551,150)
(78,918)
(630,068)
Bond issuance cost
(102,110)
-
(102,110)
Total Non -operating Revenues
(Expenses)
(480,542)
(76,574)
(557,116)
862
Income before transfers
3,044,560
27,857
3,072,417
(25,441)
Transfers in
919,200
919,200
19,160
Transfers out
(805,573)
(40,540)
(846,113)
Total Transfers
113,627
(40,540)
73,087
19,160
Change in net position
3,158,187
(12,683)
3,145,504
(6,281)
Net position, at beginning of year, restated
14,571,483
258,044
14,829,527
98,241
Net position, at end of year $
17,729,670
$ 245,361 $
17,975,031 $
91,960
The accompanying notes are an integral part of these financial statements
27
TOWN OF PROSPER, TEXAS
Statement of Cash Flows - Proprietary Funds
For the Year Ended September 30, 2013
Enterprise Funds
Water
Other
and Sewer
Nonmajor
Fund
Enterprise Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers and users $
8,945,723 $
221,336
Cash contributions for insurance premiums
Cash payments to suppliers for goods and services
(3,234,959)
(48,560)
Cash payments for insurance premiums
Cash payments to employees for services
(841,408)
(28,685)
Net cash provided by operating activities
4,869,356
144,091
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Transfers to/from other funds
113,627
(40,540)
Advances to other funds
660,869
3,448
Net cash provided (used) by noncapital financing activities
774,496
(37,092)
CASH FLOWS FROM CAPITAL & RELATED FINANCING ACTIVITIES
Proceeds from the issuance of debt
5,235,000
-
Premiums received on long-term debt
231,175
Bond issuance cost paid on long-term debt
(102,110)
Principal paid on bonds
(979,350)
-
Acquisition and construction of capital assets
(9,768,176)
(6,295)
Interest paid on bonds
(642,494)
(78,918)
Increase in escrow funds for capital acquisitions
3,924,660
Net cash (used) by capital and related financing activities
(2,101,295)
(85,213)
CASH FLOWS FROM INVESTING ACTIVITIES
Transfer of funds to investments
(102,389)
-
Interest on deposits and investments
172,718
2,344
Net cash provided by investing activities
70,329
2,344
Net increase in cash & cash equivalents
3,612,886
24,130
Cash and cash equivalents at beginning of year
10,038,988
223,202
Cash and cash equivalents at end of year
$ 13,651,874 $
247,332
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
Operating income (loss)
$ 3,525,102 $
104,431
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
616,513
3,420
(Increase) decrease in accounts receivable
(39,646)
(2,355)
(Increase) decrease in inventory and prepaid
15,019
-
Increase (decrease) in accounts payable
729,104
39,051
Increase (decrease) in compensated absences
4,317
(456)
Increase (decrease) in customer deposits
18,947
Net cash provided (used) by operating activities $ 4,869,356 $ 144,091
The accompanying notes are an integral part of these financial statements
28
Governmental
Activities -
Total Internal
Enterprise Service
Funds Fund
9,167,059 $
- 20,811
(3,283,519)
75,379
(870,093)
5,013,447 96,190
73,087 19,160
664,317 (24,080)
737,404 (4,920)
5,235,000
231,175
(102,110)
(979,350)
(9,774,471)
(721,412)
3,924,660
(2,186,508) -
(102,389)
175,062
862
72,673
862
3,637,016
92,132
10,262,190
95,947
13,899,206 $
188,079
3,629,533 $ (26,303)
619,933
(42,001) (1,404)
15,019
768,155 123,897
3,861
18,947
5,013,447 $ 96,190
29
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 1: Summary of Significant Accounting Policies
The financial statements of the Town of Prosper, Texas have been prepared in conformity with generally accepted
accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board
(GASB) is the accepted standard -setting body for establishing governmental accounting and financial reporting
principles. The more significant of the government's accounting policies are described below.
Reporting Entitv
The government is a municipal corporation governed by an elected seven -member council. As required by accounting
principles generally accepted in the United States of America, these financial statements present the government and
its component units, entities for which the government is considered to be financially accountable. The discretely
presented component unit is reported in a separate column in the government -wide financial statements to emphasize it
is legally separate from the government.
Discretely Presented Component Unit
The Prosper Economic Development Corporation (EDC) serves all citizens of the government and is governed by a
board appointed by the government's elected council. The government can impose its will on the EDC and affect the
day-to-day operations of the EDC by removing appointed board members at will. The scope of public service of the
EDC benefits the government and its citizens and is operated primarily within the geographic boundaries of the
government. The EDC is presented as a governmental fund type and has a September 30 year end.
Complete financial statements for the EDC may be obtained at the entity's administration office, Prosper Economic
Development Corporation, P. O. Box 1060, Prosper, Texas 75078.
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e. the statement of net position and the statement of activities) report
information on activities of the primary government and its component units. For the most part, the effect of interfund
activity has been removed from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which rely to significant extent on
fees and charges for support. Likewise, the primary government is reported separately from certain legally separate
component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are
offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment.
Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods,
services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to
meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly
included among program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary funds. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund financial
statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus and the
accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are
recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as
soon as all eligibility requirements by the provider have been met.
30
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 1: Summary of Significant Accounting Policies — continued
Measurement Focus, Basis of Accountine, and Financial Statement Presentation - continued
Governmental fund financial statements are reported using the current financial resources measurement focus and the
modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to
pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are
collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to
compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, licenses, and interest income associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the
portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as
revenue of the current period. All other revenue items are considered to be measurable and available only when cash is
received by the government.
The government reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for all financial resources of the general
government, except those required to be accounted for in another fund.
The impact fee fund, a special revenue fund, accounts for revenues that are legally restricted for particular purposes.
This fund is used to account for activity related to impact fees.
The debt service fund accounts for the resources accumulated and payments made for principal and interest on long-term
obligation debt of governmental funds.
The capital projects fund accounts for the acquisition of capital assets or construction of major capital projects not being
financed by proprietary funds.
The contribution fund, a special revenue fund, accounts for contributions made to the Town which are restricted for
various purposes.
The government reports the following major proprietary fund:
The water and sewer find, an enterprise fund, is used to account for those operations that are financed and operated in a
manner similar to private business or where the council has decided that the determination of revenues earned, costs
incurred and/or net income is necessary for management accountability. The government's water and sewer fund is to
account for water, sewer and sanitation operations.
The internal service fund is used to accumulate and allocate costs internally among the Town's various functions. The
Town uses its internal service fund to account for its employee medical reimbursement program. Because these services
predominately benefit the governmental rather than the business -type functions, they have been included within
governmental activities in the government -wide financial statements.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements.
Exceptions to this general rule are general and administrative fees, street rental fees and other charges between the
government's water and sewer function and various other functions of the government. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges
provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general
revenues include all taxes.
31
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 1: Summary of Significant Accounting Policies — continued
Measurement Focus, Basis of Accountine, and Financial Statement Presentation - continued
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and
expenses generally result from providing services and producing and delivering goods in connection with a proprietary
fund's principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers
for sales and services. The proprietary funds also recognize as operating revenue the portion of tap fees intended to
recover the cost of connecting new customers to the system. Operating expenses for proprietary funds include the cost of
sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses.
Deposits and Investments
For purposes of the statement of cash flows, cash and cash equivalents include cash on hand, demand deposits, and short-
term investments with a maturity date within three months of the date acquired by the government. Other short-term
investments are included in investments. Investments are stated at cost which approximates fair value.
Short -Term Interfund Receivables/Pavables
During the course of operations, numerous transactions occur between individual funds for goods provided or services
rendered. These receivables and payables are classified as "due from other funds" or "due to other funds" on the balance
sheet. Short-term interfund loans are classified as "interfund receivables/payables".
Inventories and Prepaid Items
All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are
recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs
applicable to future accounting periods and are recorded as prepaid items in both government -wide and fund financial
statements.
Restricted Assets
Certain resources set aside for the repayment of bonds are classified as restricted assets on the balance sheet because
their use is limited by applicable bond covenants. Also included in restricted assets are capital recovery fees (impact
fees) that are, by law, restricted for future capital improvements; and assets set aside for construction of future debt
funded capital improvements. When the government incurs an expense for which it may use either restricted or
unrestricted assets, it uses the restricted assets first.
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of
resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure)
until then. The Town only has one item that qualifies for reporting in this category. It is the deferred charge on bond
refunding reported in the government -wide statement of net position. A deferred charge on refunding results from the
difference in the carrying value of refunded debt and its reacquisition price. This account is deferred and amortized over
the shorter of the life of the refunded or refunding debt.
In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net
position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that
time. The Town has only one type of item, which arises only under a modified accrual basis of accounting that qualifies
for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds
balance sheet. The governmental funds report unavailable revenues from property taxes, fines and EMS accounts
receivable. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become
available.
32
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 1: Summary of Significant Accounting Policies — continued
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and
similar items), are reported in the applicable governmental or business -type activities columns in the government -wide
financial statements. Capital assets are defined by the government as assets with an initial, individual cost of more than
$5,000 (amount not rounded) and an estimated useful life in excess of two years. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair value at
the date of donation.
The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are
not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest is capitalized on
proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is calculated by
offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned
on invested proceeds over the same period.
Property, plant, and equipment of the primary government is depreciated using the straight line method over the
following estimated useful lives:
Assets
Years
Buildings
20 - 30
System infrastructure
15 - 45
Street infrastructure
25 - 30
Equipment
5 - 10
Vehicles
5-7
Compensated Absences
It is the government's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All
vacation and sick pay is accrued when incurred in the government -wide and proprietary fund financial statements. A
liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignation and retirements.
Long -Term Obligations
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long-term
debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business -type
activities, or proprietary fund type statement of net position. Bond premiums and discounts are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond
issuance costs, during the current period. The face amount of debt issued is reported as other financing sources.
Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are
reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are
reported as debt service expenditures.
33
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 1: Summary of Significant Accounting Policies — continued
Fund Equity
In the fund financial statements, governmental funds report restrictions of fund balance for amounts that are not available
for appropriation or are legally restricted by outside parties for use for a specific purpose. Assignments of fund balance
represent tentative management plans that are subject to change.
Note 2: Stewardship, Compliance and Accountability
Budeetary Control
Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of
America. Annual appropriated budgets are legally adopted for the general fund, impact fee fund, contributions fund and
water and sewer fund. All annual appropriations lapse at fiscal year end. Project length financial plans are adopted for
all capital project funds.
The Town follows these procedures in establishing the budgetary data reflected in the financial statements.
1. Prior to August 16th, the Town Manager submits to the Town Council a proposed operating budget for the fiscal year
commencing the following October 1. The operating budget includes proposed expenditures and the means of financing
them.
2. Public hearings are conducted to obtain taxpayer comments.
3. On the first meeting in September, the budget is legally enacted through the passage of an ordinance.
4. The Town Manager is authorized to transfer budgeted amounts between departments within any fund; however, any
revision that alters total expenditures of any fund must be approved by the Town Council.
5. Formal budgetary integration, using the modified accrual basis, is employed as a management control device during
the year for the General Fund, Impact Fee Fund and Contributions Fund. Supplemental appropriations were made during
the fiscal year for the General Fund.
6. The budget approved for the Water and Sewer Fund and Storm Drainage Fund follows similar approval procedures
but departs from accounting principles generally accepted in the United States of America by not including depreciation
and amortization in the approved budget. These amounts are reported at year end as part of the "actual" column.
Supplemental appropriations were made during the year.
7. The Debt Service and Capital Projects Funds do not have formal budgets since all are controlled by contractual
obligations approved at inception or as part of the General Fund on an annual basis. The nonmajor governmental funds
are not budgeted.
Note 3: Deposits and Investments
Deposits
At September 30, 2013, the Town's deposits and the EDC's deposits were fully covered by federal depository
insurance or collateral held by the pledging financial institution's trust department or agent in the government's name
and/or irrevocable standby letters of credit.
34
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 3: Deposits and Investments — continued
Deposits — continued
Custodial Credit Risk - Deposits: In the case of deposits this is the risk that, in the event of a bank failure, the
government's deposits may not be returned to it. The government's policy regarding types of deposits allowed and
collateral requirements is: the Depository may be a state bank authorized and regulated under Texas law; a national
bank, savings and loan association, or savings bank authorized and regulated by federal law; or a savings and loan
association or savings bank organized under Texas law; but shall not be any bank the deposits of which are not insured
by the Federal Deposit Insurance Corporation (FDIC) and pledged securities. The government is not exposed to
custodial credit risk for its deposits, as all are covered by depository insurance and pledged securities.
Investments
The Town and EDC may invest in obligations of the U.S. Treasury or the State of Texas, certain U.S. agencies,
certificates of deposit, money market savings accounts, certain municipal securities, repurchase agreements, common
trust funds and other investments specifically allowed by the Public Funds Investment Act of 1987 (Article 842a-2
Vernon's Civil Statutes).
In compliance with the Public Funds Investment Act, the government has adopted a deposit and investment policy.
That policy addresses the following risks:
Custodial Credit Risk - Investments: For an investment, this is the risk that, in the event of the failure of the
counterparty, the government will not be able to recover the value of its investments or collateral securities that are in
the possession of an outside party. The Town's investments are with the Texas Local Government Investment Pool
("TexPool"), the Texas Short -Term Asset Reserve Investment Pool ("TexSTAR"), and in certificates of deposit. The
pools are public funds investment pools created to provide a safe environment for the placement of local government
funds in authorized short-term investments. Local investment pools operate in a manner consistent with the Security
and Exchange Commission's Rule 2a7 of the Investment Company Act of 1940. The reported value of the pool is the
same as the fair value of the pool shares. The Texas Comptroller of Public Accounts exercises oversight responsibility
over TexPool. TexSTAR is managed by J.P. Morgan Investment Management, Inc. and First Southwest Asset
Management, Inc. The government is not exposed to custodial credit risk for its investments.
Credit Risk - This is the risk that an issuer of an investment will be unable to fulfill its obligations. The rating of
securities by nationally recognized rating agencies is designed to give an indication of credit risk. It is the
government's policy to limit its investments to those investments rated at least AAAm. The credit quality rating for
both TexPool and TexSTAR at year end was AAAin by Standard & Poor's.
Interest Rate Risk - This is the risk that changes in interest rates will adversely affect the fair value of an investment. In
accordance with its investment policy, the government manages its exposure to declines in fair values by limiting the
weighted average maturity of its investment portfolio to less than one year from the time of purchase. The maximum
allowable maturity for operating funds is 5 years and 2 years for debt service funds. The weighted average maturity for
the government's investment in external investment pools is less than 60 days.
Foreign Currency Risk - This is the risk that exchange rates will adversely affect the fair value of an investment. The
government is not exposed to foreign currency risk.
Concentration of Credit Risk - This is the risk of loss attributed to the magnitude of the government's investment in a
single issuer (i.e., lack of diversification). Concentration risk is defined as positions of 5 percent or more in the
securities of a single issuer. It is the government's policy to not allow for a concentration of credit risk. Investments
issued by the U. S. Government and investments in investment pools are excluded from the 5 percent disclosure
requirement. The government is not exposed to concentration of credit risk.
35
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 3: Deposits and Investments - continued
Investments - continued
At year end, the government's investment balances were as follows:
Fair
Maturity Less
Maturity Greater
Primary Government
Value
than One Year
than One Year
Investment type:
Texas Local Government investment pool
$
6,505,707
$ 6,505,707
$ -
TexSTAR investment pool
8,536,481
8,536,481
-
Certificates of deposit
6,356,603
6,254,727
101,876
Total
$
21,398,791
$ 21,296,915
$ 101,876
Prosper Economic Development Corporation
Investment type:
Texas Local Government investment pool
$
1,325
$ 1,325
TexSTAR investment pool
1,190
1,190
Total
$
2,515
$ 2,515
Note 4: Receivables
Receivables at September 30, 2013 consisted of the following:
Debt
Impact
Contri-
Water and
Nonmajor
Internal
General
Service
Fee
butions
Sewer
Enterprise
Service
Total
Property taxes
$ 102,204
$ 62,082
$ -
$ -
$ -
$ -
$ -
$ 164,286
Sales tax
462,701
462,701
Utility bills
1,063,138
27,794
1,090,932
Interest
6,602
348
13,385
20,335
Other receivables
156,850
200,000
3,198
5,000
365,048
Gross receivables
728,357
62,430
200,000
3,198
1,076,523
27,794
5,000
2,103,302
Less: allowance for
uncollectibles
(57,617)
(43,067)
(183,037)
-
(283,721)
Net receivables
$670,740
$ 19,363
$200,000
$3,198
$893,486
$27,794
$5,000
$1,819,581
Property taxes are based on the appraised values provided by the Collin County or Denton County Central Appraisal
District, whichever is applicable. Taxes are levied by October 1 of each year. Unpaid property taxes become delinquent
on February 1 of the following year. Penalty is calculated after February 1 up to the date collected by the government at
the rate of 6% for the first month and increased 1 % per month up to a total of 12%. Interest is calculated after February 1
at the rate of 1 % per month up to the date collected by the government. Under state law, property taxes levied on real
property constitute a lien on the real property which cannot be forgiven without specific approval of the State
Legislature. The lien expires at the end of twenty years. Taxes levied on personal property can be deemed uncollectible
by the Town. The Town's current policy is to write-off uncollectible personal property taxes after four years.
At September 30, 2013 the EDC had sales tax receivable of $154,214. No allowance for uncollectible accounts is
deemed necessary.
NEO
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 5: Capital Assets
Capital asset activity for the year ended September 30, 2013 was as follows:
Balance
Balance
October 1,
Additions/
Retirements/
September 30,
2012
Completions
Adjustments
2013
Governmental activities:
Capital assets, not being depreciated:
Land
$ 2,064,797 $
3,825,796 $
$
5,890,593
Construction in progress
11,827,532
5,252,695
(9,657,710)
7,422,517
Total capital assets, not being depreciated
13,892,329
9,078,491
(9,657,710)
13,313,110
Capital assets being depreciated:
Buildings and improvements
14,182,669
14,182,669
Equipment
4,930,769
694,743
(34,704)
5,590,808
Infrastructure
36,502,780
9,657,710
46,160,490
Total assets being depreciated
55,616,218
10,352,453
(34,704)
65,933,967
Less accumulated depreciation for:
Buildings and improvements
(1,433,077)
(695,634)
(2,128,711)
Equipment
(1,703,783)
(412,324)
34,704
(2,081,403)
Infrastructure
(5,441,193)
(1,318,552)
(6,759,745)
Total accumulated depreciation
(8,578,053)
(2,426,510)
34,704
(10,969,859)
Total capital assets being depreciated, net
47,038,165
7,925,943
-
54,964,108
Governmental activities capital assets, net
$ 60,930,494 $
17,004,434 $
(9,657,710) $
68,277,218
Business-tvpe activities:
Capital assets, not being depreciated:
Land
$ 5,000 $
$
$ 5,000
Construction in progress
1,067,902
9,704,512
10,772,414
Total capital assets, not being depreciated
1,072,902
9,704,512
- 10,777,414
Capital assets being depreciated:
Buildings and systems
21,255,176
21,255,176
Vehicles and Equipment
615,765
88,274
704,039
Total assets being depreciated
21,870,941
88,274
- 21,959,215
Less accumulated depreciation for:
Buildings and systems
(3,768,684)
(553,175)
(4,321,859)
Vehicles and Equipment
(360,223)
(66,758)
(426,981)
Total accumulated depreciation
(4,128,907)
(619,933)
- (4,748,840)
Total capital assets being depreciated, net
17,742,034
(531,659)
- 17,210,375
Business -type activities capital assets, net
$ 18,814,936 $
9,172,853 $
- $ 27,987,789
37
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 5: Capital Assets — continued
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental activities:
General government $
8,208
Police
54,191
Dispatch
105,489
Fire
213,973
Streets
1,325,051
Parks and recreation
716,365
Inspections
3,233
$
2,426,510
Business -type activities:
Water and Sewer $
616,513
Nonmajor enterprise fund
3,420
$
619,933
Capital asset activity for the EDC for the year ended September 30, 2013 was as follows:
Balance
Balance
October 1, Additions/
Retirements/
September 30,
Component unit: 2012 Completions
Adjustments
2013
Capital assets being depreciated:
Leasehold improvements $ 113,849 $
$
$ 113,849
Total assets being depreciated 113,849 -
-
113,849
Less accumulated depreciation for:
Leasehold improvements (113,849) -
(113,849)
Total accumulated depreciation (113,849) -
-
(113,849)
Total capital assets being depreciated, net - -
-
-
Component unit capital assets, net $ - $
Note 6: Construction Commitments
At September 30, 2013 the total estimated costs to complete significant construction projects in progress at year-end
totaled approximately $2,012,541 for the Capital Projects Fund and $6,531,154 for the Utility Fund.
38
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 7: Interfund Receivables, Payables and Transfers
Interfund balances at September 30, 2013 were as follows:
Due to/from other funds:
Due To Fund
Due From Fund
Amount
Purpose
Capital Projects
General Fund
$ 2,216,952
Short term loans
Capital Projects
Water and Sewer
1,563
Short term loans
General Fund
Water and Sewer
2,104
Short term loans
General Fund
Storm Drainage
1,352
Short term loans
General Fund
Water and Sewer
93,910
Short term loans
General Fund
Capital Projects
3,841
Short term loans
General Fund
Internal Service
9,619
Short term loans
Impact Fees
General Fund
773,835
Short term loans
Internal Service
General Fund
35,226
Short term loans
Internal Service
Water and Sewer
16,440
Short term loans
Internal Service
Storm Drainage
1,416
Short term loans
Nonmajor governmental
General Fund
112,578
Short term loans
Contributions Fund
General Fund
4,624
Short term loans
Contributions Fund
Water and Sewer
1,460,079
Short term loans
Water and Sewer
Impact Fee Fund
891,200
Short term loans
Water and Sewer
General Fund
23,696
Short term loans
$ 5,648,435
The outstanding balances between funds result mainly from the time lag between the dates that (1) reimbursable
expenditures occur, (2) transactions are recorded in the accounting system, and (3) payments between funds are made.
Interfund transfers:
Transfer From
General Fund
General Fund
Impact Fee
Impact Fee
Capital Projects
Nonmajor Governmental
Water and Sewer
Water and Sewer
Water and Sewer
Nonmajor Enterprise
Nonmajor Enterprise
Transfer To
Amount
Purpose
Internal Service Fund
$ 17,000
Administrative
Capital Projects
2,216,000
Capital outlay
Capital Projects
2,951,000
Capital outlay
Water and Sewer
891,200
Capital outlay
General Fund
25,644
Capital expenditures
Capital Projects
48,845
Capital outlay
Internal Service Fund
2,160
Administrative
Debt Service
14,253
Debt service
General Fund
789,160
Administrative
Water and Sewer
28,000
Debt service
General Fund
12,540
Administrative
$6,995,802
39
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 8: Long-term Debt
The government issues general obligation bonds to provide funds for the acquisition and construction of major capital
facilities and equipment. General obligation bonds have been issued for both governmental and business -type
activities. The government also issues revenue bonds where the government pledges income derived from the acquired
or constructed assets to pay debt service. The certificates of obligation will be repaid by the debt service fund in
combination with system revenues.
Long-term debt activity for the year ended September 30, 2013 was as follows:
Balance
Balance
Amount Due
10/1/2012
Issued
Retired
9/30/2013
Within one Year
Governmental Activities:
Compensated absences $
348,642 $
211,305 $
(174,321) $
385,626
$ 192,813
Bonds
25,736,950
7,710,000
(5,275,650)
28,171,300
1,577,750
Bond Premium on Issuance
234,931
168,875
(25,107)
378,699
Total Governmental
26,320,523
8,090,180
(5,475,078)
28,935,625
1,770,563
Business -type Activities:
Compensated absences
45,227
35,521
(31,659)
49,089
24,545
Bonds
18,447,350
5,235,000
(979,350)
22,703,000
1,197,250
Bond Premium on Issuance
350,667
231,176
(35,448)
546,395
Total Business -type
18,843,244
5,501,697
(1,046,457)
23,298,484
1,221,795
Total Primary Government $
45,163,767 $
13,591,877 $
(6,521,535) $
52,234,109 $
2,992,358
Component Unit
Compensated absences $
3,113 $
10,699 $
(3,113) $
10,699 $
In June 2013, the Town issued refunding bonds, $3,830,000 General Obligation, Series 2013 for the purpose of
refunding $3,880,000 of taxable general obligation bonds of the Town, in order to lower the overall debt service
requirements of the Town and to pay costs associated with the issuance of the bonds. There was no cash flow savings or
economic gain from the refunding since the refunding was primarily to refinance a short-term taxable issue to long-term
financing.
40
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 8: Long-term Debt — continued
Bonds, certificates of obligation and tax notes at September 30, 2013 are comprised of the following issues for the
Debt Service Fund and Water and Sewer Fund:
Governmental Business -Type
Activities Activities Total
2004 Certificates of Obligation (38% debt service fund portion and
62% water and sewer portion) issued March 11, 2004 and maturing
August 15, 2007 to August 15, 2024. Interest payable February 15 and
August 15 at rates ranging from 4.00% to 4.50%. $ 2,849,700 $ 4,624,600 $7,474,300
2006 Certificates of Obligation (48% debt service fund portion and
52% water and sewer portion) issued September 21, 2006 and
maturing August 15, 2007 to August 15, 2026. Interest payable
February 15 and August 15 at rates ranging from 4.00% to 4.50%. 4,435,200 4,804,800 9,240,000
2008 Certificates of Obligation (90% debt service fund portion and
10% water and sewer portion) issued December 2, 2008 and maturing
February 15, 2011 to February 15, 2029. Interest payable February 15
and August 15 at rates ranging from 3.75% to 6.0% 11,245,500 1,249,500 12,495,000
Tax Notes, Series 2010 (100% debt service fund portion) issued
October 1, 2010 and maturing February 15, 2012 to February 15,
2017. Interest payable February 15th and August 15th at rates ranging
from 1.15% to 1.85%.
1,425,000 1,425,000
2011 General Obligation Refunding and Improvement bonds (39%
debt service fund portion and 61 % water and sewer portion) issued
September 1, 2011 and maturing February 15, 2018. Interest payable
February 15 and August 15 at rates ranging from 1.75% to 2.0%.
705,900 1,104,100 1,810,000
2012 General Obligation Bonds (100% debt service fund portion)
issued June 15, 2012 and maturing February 15, 2032. Interest
payable February 15 and August 15 at rates ranging from 1.38% to
3.25%.
3,680,000 3,680,000
2012 Certificates of Obligation (100% water and sewer portion)
issued June 15, 2012 maturing February 15, 2032. Interest payable
February 15 and August 15 at rates ranging from .40% to 3.25%.
5,685,000 5,685,000
2013 General Obligation Refunding Bonds (100% debt service fund
portion) issued June 15, 2013 maturing August 15, 2029. Interest
payable February 15 and August 15 at rates ranging from 2.0% to
4.0%.
3,830,000 3,830,000
2013 Certificates of Obligation (100% water and sewer portion)
issued June 15, 2013 maturing August 15, 2029. Interest payable
February 15 and August 15 at rates ranging from 2.0% to 4.0%.
5,235,000 5,235,000
$ 28,171,300 $ 22,703,000 $ 50,874,300
41
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 8: Long-term Debt — continued
The annual requirements to amortize the combined debt outstanding for the Debt Service Fund and Water and Sewer
Fund as of September 30, 2013 are as follows:
Governmental Activities
Business -Type
Activities
Year Ended
Total
Total
Total
September 30
Principal
Interest
Principal
Interest
Principal
Interest
Obligation
2014 $
1,577,750 $
1,223,630
$ 1,197,250 $
862,134
$ 2,775,000
$ 2,085,764
$ 4,860,764
2015
1,644,400
1,836,100
1,240,600
813,205
2,885,000
2,649,305
5,534,305
2016
1,836,100
1,874,250
1,478,900
771,360
3,315,000
2,645,610
5,960,610
2017
1,874,250
1,043,656
1,485,750
725,525
3,360,000
1,769,181
5,129,181
2018
1,559,700
981,341
1,530,300
677,112
3,090,000
1,658,453
4,748,453
2019-2023
8,259,500
3,880,239
7,415,500
2,579,321
15,675,000
6,459,560
22,134,560
2024-2028
8,090,600
1,815,336
5,193,700
1,175,717
13,284,300
2,991,053
16,275,353
2029-2032
3,329,000
289,621
3,161,000
351,456
6,490,000
641,077
7,131,077
Total $
28,171,300 $
12,944,173
$ 22,703,000 $
7,955,830
$ 50,874,300
$ 20,900,003
$ 71,774,303
Note 9: Restricted
Assets
The balances of the restricted asset accounts are as follows:
Governmental Activities
Impact Fee Fund
Impact fees - capital projects
$
6,300,926
Debt Service
Sinking fund
1,187,017
Capital Projects
Unspent bond proceeds / other restricted funds
7,913,626
Contribution Fund
Contributions / escrow
810,901
$
16,212,470
Business -type Activities
Water and Sewer Fund
Customer Deposits / Escrow
$
3,973,607
Water and Sewer Fund
Capital Projects (Unspent Bond Proceeds)
7,876,788
$
11,850,395
Note 10: Risk Management
The government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; injuries to employees; and natural disasters. The government is a participant in the Texas Municipal
League Workers' Compensation Joint Insurance Fund (WC Fund) and the Texas Municipal League Joint Self -
Insurance Fund (Property -Liability Fund), a public entity risk pool operated by the Texas Municipal League Board for
the benefit of individual governmental units located with Texas. The government pays an annual premium to the
Funds for its workers' compensation and property and liability insurance coverage. The WC Fund and Property -
Liability Fund are considered self-sustaining risk pools that provide coverage for its members for up to $2,000,000 per
insured event. There were no significant reductions in insurance coverage from the previous year. Settled claims for
risks have not exceeded insurance coverage in any of the past three years.
42
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 11: Texas Municipal Retirement System
Plan Description
The Town provides pension benefits for all of its eligible employees through a nontraditional, joint contributory, hybrid
defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), an agent multiple -employer public
employee retirement system. The plan provisions that have been adopted by the Town are within the options available in
the governing state statutes of TMRS.
TMRS issues a publicly available comprehensive annual financial report that includes financial statements and required
supplementary information (RSI) for TMRS. The report also provides detailed explanations of the contributions, benefits
and actuarial methods and assumptions used by the System. This report may be obtained by writing to TMRS, P.O. Box
149153, Austin, TX 78714-9153 or by calling 800-924-8677; in addition, the report is available on TMRS' website at
www.TMRS.com.
The plan provisions are adopted by the governing body of the Town, within the options available in the state statutes
governing TMRS. Plan provisions for the Town were as follows:
Employee deposit rate
Matching ratio (city to employee)
Years required for vesting
Service retirement eligibility
(expressed as age / years of service)
Updated Service Credit
Annuity Increase (to retirees)
Contributions
Plan Year 2012
7%
2 to 1
5
60/5, 0/20
100% Repeating, Transfers
70% of CPI Repeating
Plan Year 2013
7%
2 to 1
5
60/5, 0/20
100% Repeating, Transfers
70% of CPI Repeating
Under the state law governing TMRS, the contribution rate for each city is determined annually by the actuary, using the
Projected Unit Credit actuarial cost method. This rate consists of the normal cost contribution rate and the prior service
cost contribution rate, which is calculated to be a level percent of payroll from year to year. The normal cost
contribution rate finances the portion of an active member's projected benefit allocated annually; the prior service
contribution rate amortizes the unfunded (overfunded) actuarial liability (asset) over the applicable period for that city.
Both the normal cost and prior service contribution rates include recognition of the projected impact of annually
repeating benefits, such as Updated Service Credits and Annuity Increases.
The Town contributes to the TMRS Plan at an actuarially determined rate. Both the employees and the Town make
contributions monthly. Since the Town needs to know its contribution rate in advance for budgetary purposes, there is a
one-year delay between the actuarial valuation that serves as the basis for the rate and the calendar year when the rate
goes into effect. The annual pension cost and net asset are as follows:
Three Year Trend Information
Fiscal
Annual
Year
Pension
Ending
Cost (APC)
2011
$ 392,523
2012
436,397
2013
549,899
Actual
Percent
Net Pension
Contribution
of APC
Obligation
Made
Contributed
(NPO)
$ 407,378
104%
$ (36,046)
446,794
102%
(46,443)
543,431
99%
(39,975)
43
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 11: Texas Municipal Retirement System — continued
Annual Required Contribution (ARC) $ 556,517
Interest on Net Pension Obligation (3,251)
Adjustment to the ARC (3,367)
Annual Pension Cost (APC) 549,899
Contributions Made (543,431)
Increase (Decrease) in net pension obligation 6,468
Net Pension Obligation / (Asset), Beginning of Year (46,443)
Net Pension Obligation / (Asset), End of Year $ (39,975)
The net pension asset has not been recorded in the Town's financial statements due to its immateriality.
The required contribution rates for fiscal year 2013 are determined as part of the December 31, 2010 and 2011 actuarial
valuations. Additional information as of the latest actuarial valuation, December 31, 2012, also follows:
Valuation Date
Actuarial Cost Method
Amortization Method
GASB 25 Equivalent Single
Amortization Period
Amortization Period for
New Gains/Losses
Asset Valuation Method
Actuarial Assumptions:
Investment Rate of Return*
Projected Salary Increases*
*Includes Inflation at
Actuarial Assumptions
12/31 /2010 12/31 /2011 12/31 /2012
Projected Unit Credit Projected Unit Credit Projected Unit Credit
Level Percent of Payroll Level Percent of Payroll Level Percent of Payroll
22.5 years - Closed 21.5 years - Closed 20.5 years - Closed
Period Period Period
25 Years
10-Year Smoothed
Market
7.0%
Varies by age and
service
3.00%
25 Years
10-Year Smoothed
Market
7.0%
Varies by age and
service
3.00%
25 Years
10-Year Smoothed
Market
7.0%
Varies by age and
service
3.00%
Cost -of -Living Adjustments 2.1% 2.1% 2.1%
Funded Status and Fundine Progress
The schedule of funding progress below presents multi -year trend information about whether the actuarial value of the
plan assets is increasing or decreasing over time relative to the actuarial accrued liability of benefits.
44
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 11: Texas Municipal Retirement System — continued
Actuarial
Unfunded
UAAL as a
Actuarial
Accrued
(Overfunded)
Percentage
Actuarial
Value of
Liability
AAL
Funded
Covered
of Covered
Valuation
Assets
(AAL)
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(b=a)
(/b)
( c)
b-a /c
12/31/2010
$ 3,175,249
$ 4,606,199
$ 1,430,950
68.9%
$ 3,828,422
37.4%
12/31/2011
4,072,790
5,493,307
1,420,517
74.1%
4,160,807
34.1%
12/31/2012
5,094,120
6,472,843
1,378,723
78.7%
4,590,015
30.0%
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
events far into the future. Actuarially determined amounts are subject to continual revision as actual results are
compared to past expectations and new estimates are made about the future.
Actuarial calculations are based on the benefits provided under the terms of the substantive plan in effect at the time of
each valuation, and reflect a long-term perspective. Consistent with that perspective, actuarial methods and
assumptions used include techniques that are designed to reduce short-term volatility in actuarial accrued liabilities and
the actuarial value of assets.
Note 12: Fund Balance
The Town classifies governmental fund balances in accordance with Government Accounting Standards Board
(GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions:
Nonspendable fund balance includes amounts that either (a) are not in a spendable form or (b) are legally or
contractually required to be maintained intact.
Restricted fund balance includes amounts for which constraints have been placed on the use of the resources either (a)
externally imposed by creditors (such as through a debt covenant), grantors, contributors, or laws or regulations of
other governments, or (b) or imposed by law through constitutional provisions or enabling legislation.
Committed fund balance includes amounts that can be used only for the specific purposes determined and approved by
passage of a formal resolution of the government's highest level of decision -making authority, the Town Council.
Commitments may be changed or lifted only by the government taking the same formal action that imposed the
constraint originally. In accordance with Town Charter, an amount equal to twenty percent of total general fund
expenditures has been identified as committed.
Assigned fund balance includes amounts intended to be used by the government for specific purposes. Pursuant to
Ordinance 11-66, the Town Council designated the Town Manager or his/her designee as the official authorized person
to assign fund balance. In governmental funds other than the general fund, assigned fund balance represents the
amount that is not restricted or committed. At September 30, 2013 the Town had assigned fund balances for specific
purposes including parks and recreation in the amount of $1,476,688.
Unassigned fund balance is the residual classification of the general fund and includes all amounts not contained in the
other classifications.
The Town uses restricted amounts first when both restricted and unrestricted fund balances are available. Additionally,
the Town would use committed, then assigned and lastly unassigned amounts of unrestricted fund balance when
expenditures are made.
The Town's financial goal is to achieve and maintain an unassigned fund balance in the general fund equal to twenty-
five percent of budgeted expenditures, but may be reduced down to ten percent in unusual financial circumstances with
a corrective five-year plan to restore the fund balance back to twenty-five percent.
45
TOWN OF PROSPER, TEXAS
Notes to the Financial Statements
For the Year Ended September 30, 2013
Note 13: Prior Period Adjustments
The Town decided to early implement GASB Statement No. 65, Items Previously Reported as Assets and Liabilities
during the year ended September 30, 2013. Prior to implementation, the Town capitalized bond and other debt issuance
costs in the government wide and proprietary fund financial statements when incurred and subsequently amortized the
resulting asset over the life of the bonds. The Statement requires that such items now be expensed as incurred, including
writing off balances previously capitalized. The following table illustrates the effect of the prior period adjustments at
September 30, 2013.
Governmental
Water and Sewer
Business -type
Activities
Fund
Activities
As previously stated September 30, 2012 $
61,078,750 $
14,889,958 $
15,148,002
Expensing of bond issuance costs in accordance with
GASB 65
(485,121)
(318,475)
(318,475)
Beginning fund balance October 1, 2012 as restated $
60,593,629 $
14,571,483 $
14,829,527
Note 14: Upcoming Accounting Pronouncements
In June 2012, the GASB issued Statement No. 68, Accounting and Financial Reporting for Pensions, an amendment of
GASB Statement 27. This Statement requires governments providing defined benefit pension plans to recognize their
long-term obligation for pension benefits as a liability on the statement of net position and to more comprehensively and
comparably measure the annual costs of pension benefits. This Statement will require the Town to record a liability and
expense equal to their proportionate share of the collective net pension liability and expense for the TMRS plan. This
Statement requires the use of the entry age normal method to be used with each period's service cost determined as a
level percentage of pay and requires certain other changes to compute the pension liability and expense. This Statement
also requires revised and new note disclosures and required supplementary information (RSI) to be reported by
employers. The provisions of this Statement are effective for periods beginning after June 15, 2014.
The Town will fully analyze the impact of this new Statement prior to the effective date for the Statement listed above.
46
TOWN OF PROSPER, TEXAS
Schedule of Revenues, Expenses and Changes in Fund Net Position
Budget and Actual - Water and Sewer
For the Year Ended September 30, 2013
OPERATING REVENUES
Water and sewer charges $
Sanitation charges
Water and sewer connections
Service initiation
Miscellaneous
Total Operating Revenue
OPERATING EXPENSES
Personnel services
Materials and supplies
Contractual services
Total Operating Expenses
Operating Income (Loss)
NON -OPERATING REVENUES
(EXPENSES)
Interest revenue
Interest expense and fiscal charges
Bond issuance cost
Total nonoperating revenues
(Expenses)
INCOME BEFORE TRANSFERS
TRANSFERS
Water and Sewer Fund
Final
Original
Amended
Budget
Budget
6,743,500 $
6,934,276 $
770,000
774,000
300,000
484,449
32,002
42,002
25,500
73,100
7,871,002
8,307,827
949,891
393,500
3,756,958
5,100,349
2,770,653
30,000
(1,596,847)
(1,566,847)
1,203,806
Net transfers in/(out) (791,320)
Total Transfers (791,320)
Change in net position $ 412,486 $
Reconciliation to generally accepted accounting principles (GAAP)
Depreciation
Change in net position (GAAP basis)
Net position, beginning, restated
Net position, ending
823,367
355,700
3,867,135
5,046,202
3,261,625
137,745
(1,596,847)
(1,459,102)
1,802,523
(791,320)
(791,320)
1,011,203
Actual
Budget
Basis
7,371,604 $
891,160
559,186
53,337
91,135
8,966,422
845,725
245,047
3,734,035
4,824,807
4,141,615
172,718
(551,150)
(102,110)
(480,542)
3,661,073
113,627
113,627
3,774,700 $
(616,513)
3,158,187
14,571,483
17,729,670
Variance
With Final
Budget
Positive
(Negative)
437,328
117,160
74,737
11,335
18,035
658,595
(22,358)
110,653
133,100
221,395
879,990
34,973
1,045,697
(102,110)
978,560
1,858,550
904,947
904,947
2,763,497
47
TOWN OF PROSPER, TEXAS
Schedule of Revenues, Expenses and Changes in Fund Net Position
Budget and Actual - Storm Drainage
For the Year Ended September 30, 2013
Variance
Storm Drainage Fund
With Final
Final
Actual
Budget
Original
Amended
Budget
Positive
Budget
Budget
Basis
(Negative)
OPERATING REVENUES
Storm drainage utility fees $
208,000 $
208,000 $
223,691 $
15,691
Total Operating Revenue
208,000
208,000
223,691
15,691
OPERATING EXPENSES
Personnel services
42,715
27,512
28,229
(717)
Materials and supplies
34,450
34,450
13,377
21,073
Contractual services
51,450
51,450
74,234
(22,784)
Total Operating Expenses
128,615
113,412
115,840
(2,428)
Operating Income (Loss)
79,385
94,588
107,851
13,263
NON -OPERATING REVENUES
(EXPENSES)
Interest revenue
1,000
2,000
2,344
344
Interest expense and fiscal charges
(106,918)
(106,918)
(78,918)
28,000
Total nonoperating revenues
(Expenses)
(105,918)
(104,918)
(76,574)
28,344
INCOME BEFORE TRANSFERS
(26,533)
(10,330)
31,277
41,607
TRANSFERS
Net transfers in/(out)
(12,780)
(12,780)
(40,540)
(27,760)
Total Transfers
(12,780)
(12,780)
(40,540)
(27,760)
Change in net position $
(39,313) $
(23,110)
(9,263) $
13,847
Reconciliation to generally accepted accounting
principles (GAAP)
Depreciation
(3,420)
Change in net position (GAAP basis)
(12,683)
Net position, beginning, restated
258,044
Net position, ending
$
245,361
48
Ir
IL,
0
lk
STATISTICAL SECTION
This part of the Town of Prosper's comprehensive annual financial report presents detailed information as a context for
understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the government's overall financial health.
Contents
Page
Financial Trends 49
These schedules contain trend information to help the reader understand how the
government's financial performance and well-being have changed over time.
Revenue Capacity 59
These schedules contain information to help the reader assess the government's
most significant local revenue source, the property tax.
Debt Capacity 65
These schedules present information to help the reader assess the affordability
of the government's current levels of outstanding debt and the government's ability
to issue additional debt in the future.
Demographic and Economic Information 71
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities
take place.
Operating Information 73
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs.
Source: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial
reports for the relevant year.
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net position
Source: Town financial statements
Town of Prosper, Texas
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2004 2005 2006 2007
$ 587
$ 1,119
$ 1,225
$ 706
131
223
12,226
8,150
1,246
3,221
(6,941)
1,861
$ 1,964
$ 4,563
$ 6,510
$ 10,717
$ 2,728 $
2,765 $
3,750
$ 4,609
33
32
40
39
945
1,199
2,862
3,242
$ 3,706 $
3,996 $
6,652
$ 7,890
$ 3,315
$ 3,884
$ 4,975
$ 5,315
164
255
12,266
8,189
2,191
4,420
(4,079)
5,103
$ 5,670
$ 8,559
$ 13,162
$ 18,607
i.
2008
2009
2010
2011
2012
2013
$ 33,422
$ 33,919
$ 37,271
$ 37,366
$ 41,798
$ 46,918
9,809
8,440
5,952
9,359
10,849
9,882
4,693
3,704
8,410
6,979
8,432
10,183
$ 47,924
$ 46,063
$ 51,633
$ 53,704
$ 61,079
$ 66,983
$ 3,321 $ 6,804 $ 5,704 $ 5,615 $ 6,058 $ 12,643
42 44 - - - -
6,338 5,929 6,034 7,695 9,090 5,332
$ 9,701 $ 12,777 $ 11,738 $ 13,310 $ 15,148 $ 17,975
$ 36,743
$ 40,723
$ 42,975
$ 42,981
$ 47,856
$ 59,561
9,851
8,484
5,952
9,359
10,849
9,882
11,031
9,633
14,444
14,674
17,522
15,515
$ 57,625
$ 58,840
$ 63,371
$ 67,014
$ 76,227
$ 84,958
50
Expenses
Governmental activities:
General government
Public Safety
Transportation
Culture and Recreation
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Water, Sewer and sanitation
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public Safety
Transportation
Culture and Recreation
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services:
Water, sewer and sanitation
Total business -type activities program revenues
Total primary government program revenues
Net (expense) revenue
Governmental activities
Business -type activities
Total primary government net expense
Town of Prosper, Texas
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
51
Fiscal Year
2004
2005
2006
2007
638
$ 934
$ 1,229
$ 1,492
1,285
1,601
1,805
2,089
414
230
236
417
17
49
244
125
195
276
252
516
2,549
3,090
3,766
4,639
1,534
2,381
2,652
3,889
1,534
2,381
2,652
3,889
4,083
5,471
6,418
8,528
802
1,318
1,852
2,363
348
348
304
159
293
221
412
1,047
21
115
98
680
123
559
266
547
1,587
2,561
2,932
4,796
1,522
2,243
3,603
3,444
1,522
2,243
3,603
3,444
3,109
4,804
6,535
8,240
(962)
(529)
(834)
157
(12)
(138)
951
(445)
(974) $
(667) $
117 $
(288)
2008
2009
2010
2011
2012
2013
$ 2,063
$ 2,764
$ 2,193
$ 3,075
$ 2,785
$ 2,890
2,485
3,329
3,869
4,108
4,341
5,052
1,444
1,356
1,609
2,370
1,616
1,825
130
444
917
728
1,546
1,886
459
1,276
895
1,139
1,108
1,318
6,581
9,169
9,483
11,420
11,396
12,971
4,076
4,460
5,140
5,332
5,476
6,293
4,076
4,460
5,140
5,332
5,476
6,293
10,657
13,629
14,623
16,752
16,872
19,264
1,440
561
672
826
1,992
2,210
162
360
397
400
312
352
485
-
-
-
-
-
418
-
-
-
-
2
452
1,397
2,224
350
266
93
-
-
-
2,908
5,356
5,716
2,957
2,318
3,293
4,484
7,926
8,373
4,507
4,720
5,393
7,238
8,021
9,099
4,507
4,720
5,393
7,238
8,021
9,099
7,464
7,038
8,686
11,722
15,947
17,472
(3,624)
(6,851)
(6,190)
(6,936)
(3,470)
(4,598)
431
260
253
1,906
2,545
2,806
$ (3,193)
$ (6,591)
$ (5,937) $
(5,030)
$ (925)
$ (1,792)
52
Town of Prosper, Texas
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes
Property taxes
Sales taxes
Franchise taxes
Impact fees and escrow fees
Investment income
Miscellaneous
Gain/(Loss) on sale of capital asset
Transfers
Total governmental activities
Business -type activities:
Investment income
Miscellaneous income
Gain/(Loss) on sale of capital asset
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Source: Town financial statements
Fiscal Year
2004
2005
2006
2007
$ 870
$ 1,574 $
1,686
$ 3,015
971
1,407
1,509
1,208
162
206
201
304
79
289
574
1,107
59
63
376
79
-
(5)
-
-
(284)
(406)
(1,565)
(1,553)
1,857
3,128
2,781
4,160
12
23
58
132
12
-
82
33
284
406
1,565
1,553
308
429
1,705
1,718
2,165
3,557
4,486
5,878
895
2,599
1,947
4,317
296
291
2,656
1,273
$ 1,191
$ 2,890
$ 4,603
$ 5,590
53
2008
2009
$ 4,429
$ 5,296 $
1,288
1,077
341
428
1,828
367
596
456
114
74
(1,237)
(2,708)
7,359
4,990
109
65
33
43
1,237 2,708
1,379 2,816
8,738 7,806
3,735
1,810
$ 5,545 $
2010 2011
5,505 $
5,986 $
1,309
1,321
399
425
2,688
53
338
155
116
530
15 434
10,370 8,904
74
53
39
47
(15)
(434)
98
(334)
10,468
8,570
(1,861) 4,180
3,076 351
1,215 $ 4,531 $
1,968
1,572
3,540 $
54
2012 2013
6,392 $ 7,314
1,942
2,478
505
520
628
-
162
167
864
582
352
(73)
10,845
10,988
96
175
60
91
(352)
73
(196)
339
10,649
11,327
7,375 6,389
2,349 3,145
9,724 $ 9,534
General Fund
Reserved
Unreserved
Nonspendable
Committed
Unassigned
Total general fund
All other governmental funds
Reserved
Unreserved, reported in:
Capital Project funds
Impact Fee Funds
Special revenue funds
Nonspendable
Restricted
Debt Service
Capital Projects
Assigned
Special revenue funds
Total all other governmental funds
Town of Prosper, Texas
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2004
Fiscal Year
2005 2006 2007 2008
$ - $ - $ 74 $ 59 $ 18
1,181 1,821 2,855 3,034 3,989
$ 1,181
$ 1,821
$ 2,929
$ 3,093
$ 4,007
$ 131
$ 223
$ 315
$ 581
$ 622
3,604
3,819
10,011
3,160
2,233
478
1,624
1,826
4,290
6,936
$ 4,213 $ 5,666 $ 12,152 $ 8,031 $ 9,791
Source: Balance Sheets --Governmental Funds in Town CAFRs.
55
2009 2010 2011 2012 2013
$ - $ 3 $ 1 $ - $ -
4,398 4,968 5,568
9 27
1,715 1,855
5,356 5,201
$ 4,398 $ 4,971 $ 5,569 $ 7,080 $ 7,083
$ 2,557
$ 577
$ 737
$ -
$ -
16,920
5,337
5,348
5,883
6,239
6,895
-
3,968
3,276
5
890
1,187
16,838
17,799
1,172
1,477
$ 25,360
$ 16,121
$ 16,256
$ 18,905
$ 20,463
56
Town of Prosper, Texas
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal Year
2004
2005
2006
Revenues
Taxes
$ 2,005
$ 3,186
$ 3,383
Licenses and permits
1,124
1,876
2,429
Intergovernmental
111
276
33
Charges for services
243
245
304
Fines and forfeitures
98
93
106
Investment Earnings
79
289
574
Contributions
12
72
61
Miscellaneous
59
63
376
Grants
-
-
-
Total Revenues
3,731
6,100
7,266
Expenditures
General government
624
819
1,178
Public safety
1,099
1,342
1,594
Transportation
176
165
210
Culture and recreation
7
26
29
Capital outlay
1,942
770
378
Debt service
Principal
181
189
221
Interest
184
336
257
Other charges
-
-
-
Total Expenditures
4,213
3,647
3,867
Excess of revenues over (under)
(482)
2,453
3,399
expenditures
Other financing sources (uses)
Transfer in
292
250
-
Transfer out
(576)
(656)
(1,565)
Proceeds from insurance
-
-
-
Proceeds from debt issuance
4,003
-
5,760
Premium (discount) on debt issuance
Payments to Bond Escrow Agent
Capital Leases
30
45
-
Net other financing sources (uses)
3,749
(361)
4,195
Net change in fund balances
$ 3,267
$ 2,092
$ 7,594
Debt service as a percentage of
noncapital expenditures
16.1%
18.2%
13.7%
Source: Statement of Revenues, Expenditures, and Changes in Fund Balance
for Governmental Funds
2007 2008
$ 4,500 $ 6,034
3,964
3,925
500
452
156
161
131
247
1,107
596
45
50
79
64
10,482 11,529
1,466
2,003
1,871
2,194
177
352
92
97
8,338
2,108
386
399
493
481
12,823 7,634
(2,341) 3,895
(1,553) (1,237)
48 14
(1,505) (1,223)
$ (3,846) $ 2,672
19.6% 15.9%
57
2009
2010
2011
2012
2013
$ 6,738
$ 7,264
$ 7,758
$ 8,850
$ 10,220
550
672
670
1,571
1,752
584
1,109
1,109
2,863
1,730
976
2,858
1,809
2,861
3,066
239
227
393
541
647
456
339
154
160
166
59
45
272
348
1,129
74
116
115
286
570
278
1,070
285
198
49
9,954
13,700
12,565
17,678
19,329
2,225
2,173
2,750
2,798
2,846
3,007
3,648
3,879
4,144
4,652
257
503
1,269
511
523
379
814
653
899
1,167
2,943
13,174
4,112
7,660
9,773
484
527
936
1,318
1,396
893
1,600
1,101
1,079
1,153
-
-
59
81
158
10,188
22,439
14,759
18,490
21,668
(234)
(8,739)
(2,194)
(812)
(2,339)
232
2,460
1,066
3,509
6,057
(2,940)
(2,445)
(667)
(3,177)
(6,150)
-
-
426
750
12
13,900
-
2,045
4,712
7,710
-
-
11
242
169
-
-
(1,064)
(3,899)
41
58
-
-
-
11,233
73
2,881
4,972
3,899
$ 10,999
$ (8,666)
$ 687
$ 4,160
$ 1,560
19.0% 23.0% 19.1% 22.1% 21.4%
58
Town of Prosper, Texas
General Governmental Tax Revenues By Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Fiscal
Property
Sales
Franchise
Year
Tax
Tax
Tax
Total
2004
$ 870 $
971 $
162 $
2,003
2005
1,574
1,407
206
3,187
2006
1,686
1,507
201
3,394
2007
3,015
1,208
304
4,527
2008
4,429
1,288
341
6,058
2009
5,296
1,077
428
6,801
2010
5,504
1,309
399
7,212
2011
6,012
1,321
424
7,757
2012
6,403
1,942
505
8,850
2013
7,223
2,478
520
10,221
Source: Town CAFRs and detailed financial records
59
Town of Prosper, Texas
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Total Taxable Assesed
Fiscal
Total Estimated
Estimated
Estimated
Less:
Total Taxable'
Direct
Value as a %
Year
Market Value
Market Value
Market Value
Tax Exempt
Assessed
Tax
of Estimated
Ended
as Assessed
Real Property
Personal Property
Real Property
Value
Rate
Market Value
2004
$ 315,804 $
303,034
$ 12,770 $
59,605 $
256,199
0.47970
81.13%
2005
389,550
373,458
16,092
76,950
312,600
0.40539
80.25%
2006
562,960
541,335
21,625
156,664
406,296
0.49882
72.17%
2007
922,056
895,671
26,385
353,017
569,039
0.52000
61.71%
2008
1,280,490
1,249,228
31,262
461,769
818,721
0.52000
63.94%
2009
1,502,656
1,470,009
32,647
507,992
994,664
0.52000
66.19%
2010
1,549,887
1,516,169
33,718
503,338
1,046,549
0.52000
67.52%
2011
1,651,676
1,618,179
33,497
504,888
1,146,788
0.52000
69.43%
2012
1,753,522
1,719,190
34,332
522,150
1,231,372
0.52000
70.22%
2013
1,905,100
1,865,370
39,730
557,691
1,347,409
0.52000
70.73%
Source: Collin and Denton County Appraisal District Certified Totals and Collin County Tax Assessor -Collector Tax Rolls
'Taxable Assessed Values are net of local option over-65 exemptions, state mandated agricultural exemptions, and
disabled veterans' exemptions. This amount may include senior tax freeze ceiling amounts.
60
Town of Prosper, Texas
Property Tax Rates'
Direct and Overlapping' Governments
(per $100 of assessed value)
Last Ten Fiscal Years
Town of Prosper Tax Rate
Overlapping Tax Rates
Fiscal
General
Debt
,Prosper
Collin
Collin
Denton
Year
Government
Service
Total
ISD
County
College
County
2004
0.188440
0.291260
0.479700
1.951500
0.250000
0.090646
0.254800
2005
0.184549
0.220836
0.405385
1.975310
0.250000
0.089422
0.246480
2006
0.184549
0.314268
0.498817
1.800000
0.245000
0.087683
0.231920
2007
0.275075
0.244925
0.520000
1.670000
0.245000
0.086984
0.235890
2008
0.305011
0.214989
0.520000
1.670000
0.242500
0.086493
0.235770
2009
0.314084
0.205916
0.520000
1.640000
0.242500
0.086300
0.249800
2010
0.334742
0.185258
0.520000
1.630000
0.240000
0.086300
0.273900
2011
0.316937
0.203063
0.520000
1.670000
0.240000
0.086300
0.277357
2012
0.316914
0.203086
0.520000
1.670000
0.240000
0.086299
0.282867
2013
0.326191
0.193809
0.520000
1.670000
0.237500
0.083643
0.284914
Source: Collin County and Denton County Appraisal Districts
'Tax rate is per $100 of taxable assessed value
'Overlapping rates are those of local and county governments that apply to property owners within the Town of Prosper.
61
Total Direct
Total Direct
& Overlapping
& Overlapping
Rates
Rates
Collin County
Denton County
2.771846
2.686000
2.720117
2.627175
2.631500
2.530737
2.521984
2.425890
2.518993
2.425770
2.488800
2.409800
2.476300
2.423900
2.516300
2.467357
2.516299
2.472867
2.511143
2.474914
M
Town of Prosper, Texas
Property Tax Levies and Collections
Last Ten Fiscal Years
Collections within the
Total Tax
Fiscal Year of the Levy
Total Collections to Date
Fiscal Year
Levy for
Percentage
Collections in
Percentage
Ended
Fiscal Year
Amount
of Levy
Subsequent Years
Amount
of Levy
2004
$ 860,692
$ 846,098
98.30%
$ 13,679
$ 859,777
99.9%
2005
1,561,979
1,550,274
99.25%
9,259
1,559,533
99.8%
2006
1,664,728
1,643,724
98.74%
18,581
1,662,305
99.9%
2007
2,920,145
2,871,131
98.32%
49,014
2,920,145
100.0%
2008
4,345,264
4,279,374
98.48%
65,890
4,345,264
100.0%
2009
5,218,951
5,149,015
98.66%
69,936
5,218,951
100.0%
2010
5,404,368
5,338,109
98.77%
66,259
5,404,368
100.0%
2011
5,932,358
5,898,857
99.44%
33,501
5,932,358
100.0%
2012
6,380,037
6,323,502
99.11%
56,535
6,380,037
100.0%
2013
7,036,147
6,982,787
99.24%
-
6,982,787
99.2%
Note: Taxes stated are for General Fund and Debt Service Funds.
63
Town of Prosper, Texas
Principal Property Taxpayers
Fiscal Year End 2013 and 2004
2013
2004
Percentage of
Percentage of
Taxable
Total Taxable
Taxable
Total Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Western Rim Investors
$ 44,617,791
1
3.31%
First Texas Homes Inc.
7,487,638
2
0.56%
Five SAC Self -Storage Corp.
6,940,417
3
0.52%
Rosebriar Prosper Plaza LP
6,917,151
4
0.51%
Saddle Creek Investments LTD
6,068,371
5
0.45%
Prosper Land Company LTD
5,897,633
6
0.44%
$ 10,372,563
1
4.05%
Preston Development LTD
5,417,242
7
0.40%
Deion Sanders
5,364,522
8
0.40%
$ 9,756,881
2
3.81%
Da' Hood Trust
4,594,217
9
0.34%
CC Joint Ventures LTD
4,443,353
10
0.33%
PDC 380 Prosper LTD
2,654,819
3
1.04%
Lennar Homes
2,563,437
4
1.00%
2002 Tuscany Partners LP
2,337,427
5
0.91%
Hope Lumber & Supply Co.
2,334,202
6
0.91%
Hope Lumber & Supply Co. LP
2,271,478
7
0.89%
Southern Star Concrete Inc.
2,060,976
8
0.80%
Lattimore Materials Co.
1,909,946
9
0.75%
Mahard Grain Co.
1,794,131
10
0.70%
Totals
$ 97,748,335
7.25%
$ 38,055,860
14.85%
Source: Collin and Denton County Appraisal Districts
64
Town of Prosper, Texas
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Governmental Activities
General
Fiscal
Obligation
Certificates of
Capital
Year
Bonds
Obligation Notes
Leases
2004
$ -
$ 5,584 $
403 $
50 $
2005
-
5,521
298
74
2006
-
11,214
188
31
2007
-
10,993
71
30
2008
-
10,682
-
31
2009
-
24,136
-
34
2010
-
22,259
-
51
2011
-
21,355
2,045
21
2012
4,552
19,655
1,765
-
2013
8,216
18,909
1,425
-
Business Type Activities
Revenue
Bond Notes
8,546 $ 33
8,444 17
14,581 -
14,272 -
13,813 -
13,194 -
13,915 -
13,179 -
18,798 -
23,249 -
Note: Details regarding the Town's outstanding debt can be found in the notes to the financial statements.
' See the Schedule of Demographic and Economic Statistics for personal income and population data.
N/A: Data not available at the time of this publication
65
Total
Percentage
Primary
of Personal
Per
Government
Income'
Capital
$ 14,616
11.2%
$ 4,715
14,354
7.8%
3,501
26,014
10.8%
4,955
25,366
8.8%
4,193
24,526
7.8%
3,862
37,364
11.5%
5,263
36,225
7.7%
3,844
36,600
6.3%
3,280
44,770
6.5%
3,673
51,799
N/A
3,871
Town of Prosper, Texas
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
(amounts expressed in thousands, except per capita amount)
Percentage of
General
Certificates
Other
Actual Taxable
Fiscal
Obligation
of
Notes or
Value of
Year
Bonds
Obligation
Obligations
Total
Property'
2004
$ -
$ 5,584
$ 453
$ 6,037
2.36% $
2005
-
5,521
372
5,893
1.89%
2006
-
11,214
219
11,433
2.81%
2007
-
10,993
101
11,094
1.95%
2008
-
10,682
31
10,713
1.31 %
2009
-
24,136
34
24,170
2.43%
2010
-
22,259
51
22,310
2.13%
2011
-
21,355
2,066
23,421
2.04%
2012
4,552
19,655
1,765
25,972
2.11%
2013
8,216
18,909
1,425
28,550
2.12%
Note: Details regarding the Town's outstanding debt can be found in the notes to the financial statements.
' See the Schedule of Assessed Value and Estimated Actual Value of Taxable Property for property value data.
2 Population data can be found in the Schedule of Demographic and Economic Statistics
Per
Capita`
1,947
1,437
2,178
1,834
1,687
3,404
2,368
2,099
2,131
2,134
67
Town of Prosper, Texas
Direct and Overlapping Governmental Activities Debt
As of September 30, 2013
Estimated
Estimated Share of
Debt Percentage Overlapping
Governmental Unit Outstanding Applicable' Debt
Debt repaid with property taxes:
Prosper Independent School District
$ 233,531,557
65.91%
$ 153,920,649
Collin County
393,350,000
1.95%
7,670,325
Collin College
37,694,245
1.95%
735,038
Denton County
596,245,000
0.24%
1,430,988
Subtotal - overlapping debt
1,260,820,802
163,757,000
Town of Prosper direct debt $ 28,549,999 100% 28,549,999
Total direct and overlapping debt $ 192,306,999
Source: Outstanding data for other entities from Municipal Advisory Council of Texas estimate on 10/2013 report.
Actual amounts of overlapping debt vary based on entity payment schedules and any new issuances.
Note:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and
businesses of the Town of Prosper. This process recognizes that, when considering the government's ability to issue and
repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping
government.
'The percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentages
were estimated by determining the portion of the government's taxable assessed value that is within the government's
boundaries and dividing it by the government's total taxable assessed value.
68
Town of Prosper, Texas
Legal Debt Margin Information
Last Ten Fiscal Years
(rates rounded to 4 places)
2004 2005 2006 2007 2008
Tax Rate Limit $ 1.50 $ 1.50 $ 1.50 $ 1.50 $ 2.50
Total Tax Rate 0.4797 0.4054 0.4988 0.5200 0.5200
Available Tax Rate $ 1.0203 $ 1.0946 $ 1.0012 $ 0.9800 $ 1.9800
Note: The Town Charter does not provide for a debt limit.
For FY 2002 - FY 2007, under Article XI, Section 4 of the Texas Constitution, the maximum tax rate under general law charter is
$1.50 per $100 assessed valuation.
For FY 2008- Present, under Article XI, Section 5 of the Texas Constitution, the maximum tax rate under a home rule charter is
$2.50 per $100 assessed valuation.
No direct bond debt limitation is imposed on the Town under current state law or the Town's Charter.
we
2009 2010 2011 2012 2013
$ 2.50 $ 2.50 $ 2.50 $ 2.50 $ 2.50
0.5200 0.5200 0.5200 0.5200 0.5200
$ 1.9800 $ 1.9800 $ 1.9800 $ 1.9800 $ 1.9800
IS
Town of Prosper, Texas
Demographic and Economic Statistics
Last Ten Fiscal Years
Personal
Per
Income
Capita
Fiscal
(expressed in
Personal
School
Unemployment
Year
Population'
thousands)
Income
Enrollment
Rate
2004
3,100 $
130,721 $
42,168
1,300
4.8%
2005
4,100
183,942
44,864
1,475
4.6%
2006
5,250
241,064
45,917
1,825
4.2%
2007
6,050
289,704
47,885
2,100
3.9%
2008
6,350
313,963
49,443
2,800
4.8%
2009
7,100
325,776
45,884
3,220
7.6%
2010
9,423
467,654
49,629
3,575
7.1 %
2011
11,160
584,996
52,419
3,627
7.1%
2012
12,190
684,066
56,117
5,353
5.7%
2013
13,380
N/A
N/A
6,402
5.1%
IPopulation data estimates from the North Central Texas Council of Governments
2Per capita personal income data not available specific to Prosper. Used Collin County data from Bureau of Economic Analysis to
estimate
3Enrollment data comes from Prosper ISD
4Annual Unemployment Rate updated to Collin County data from the Texas Workforce Commission
N/A: Data not available at the time of this publication
71
Town of Prosper, Texas
Principal Employers
Current Year
2013
Percentage
of Total Town
Emolover
Emplovees
Rank
Emnlovment
Prosper ISD
766
1
57.25%
Town of Prosper
122
2
9.12%
Gentle Creek
52
3
3.89%
Dairy Manufacturers, Inc.
35
4
2.62%
Mahard Egg Farm
31
5
2.32%
ProBuild
30
6
2.24%
Lattimore Materials
26
7
1.94%
CVS
25
8
1.87%
Crossland Construction
20
9
1.49%
Prosper Bank
12
10
0.90%
Total
1,119
83.63%
Source: Prosper EDC, Self -reported by Employers & Staff Estimate
N/A: Data not available for 2004 at the time of this publication
72
Town of Prosper, TX
Operating Indicators by Function/Program
Last Ten Fiscal Years
(dollar amounts below expressed in thousands)
Fiscal Year
Function/Program
2004
2005
2006
2007
2008
2009
General Government
Building Inspection Permits
Commercial Construction
Number of Units
N/A
N/A
15
14
23
14
Total dollar value of permits issued
N/A
N/A
$
5,630
$
14,410
$
6,195
$
4,721
Average Value
N/A
N/A
$
375
$
1,029
$
269
$
337
Residential Construction
Number of Units
177
310
340
338
227
204
Total dollar value of permits issued
N/A
N/A
$
125,180
$
109,141
$
99,110
$
62,870
Average Value
N/A
N/A
$
368
$
323
$
437
$
308
Public Safety
Police
Physical Arrests
32
47
48
64
90
88
Traffic Collisions
95
115
128
99
72
92
Fire
Total Incidents/Calls for Service
613
784
901
576
646
747
Fire
28
43
66
34
56
45
Overpressure/Explosion
-
-
-
1
1
-
Rescue & EMS
484
544
613
292
334
379
Hazardous Condition
21
25
24
53
38
36
Service Call
23
60
57
91
104
116
Good Intent Call
21
49
66
55
59
80
False Alarm & False Call
27
42
46
45
52
87
Severe Weather & Natural Disaster
-
3
-
2
2
3
Special Incident
9
18
29
3
-
1
Fire Marshal
Fire Inspections
N/A
N/A
N/A
N/A
N/A
94
Fire Safety Programs
N/A
N/A
N/A
N/A
N/A
37
Municipal Court
Number of cases filed
882
887
1,059
1,123
1,762
1,743
Number of cases closed
796
678
825
979
1,707
1,592
Public Works
Water & Sewer
Water Customers
1,277
1,656
2,013
2,380
2,664
2,883
Wastewater Customers
867
1,173
1,493
1,842
2,007
2,137
Source: Town of Prosper Department Staff
N/A: Data not available at the time of this publication.
73
2010 2011 2012 2013
8 13 21 21
$ 3,150 $ 14,341 $ 28,385 $ 4,219
$ 394 $ 1,103 $ 1,352 $ 201
299 347 445 483
$ 79,232 $ 100,084 $ 172,757 $ 195,257
$ 265 $ 288 $ 388 $ 404
150
109
111
99
138
151
174
129
776
1,046
1,122
1,063
42
63
67
45
-
1
11
6
399
441
585
597
30
38
34
20
147
234
193
196
61
85
100
94
95
107
132
96
2
64
-
3
-
13
-
6
112
659
402
278
42
20
23
14
2,050
2,025
1,645
2,118
1,504
1,833
1,688
1,872
3,080 3,431 3,853 4,418
2,333 2,672 3,084 3,568
74
Town of Prosper, Texas
Full-time Equivalent Town Government Employees by Function
Last Ten Fiscal Years
Fiscal Years
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
GENERAL FUND
Administration
3
4
4
5
5
5
5.5
5.5
6.5
6.5
Code Compliance
-
1
1
1
1
1
1
1
1
1
Court
1
1
1
1
1
1
1
1
1
1
Dispatch
-
-
-
-
-
1
6
7
7
7
Engineering
-
-
-
1
1
1
1
1
1
1
Fire
5.5
8.5
8.5
8.5
12.5
18.5
18.5
18.5
19
20
Fire Marshal
-
-
-
1
1
1
1
1
1
1
Inspections
2
3
4
6
7
8
6
6
6
7
Library
-
-
-
1
1
1
1
1
1
1.5
Parks
-
-
1
1
2
2
4
4
8
8
Planning
-
1
1
1
2
3
3
2
2
3
Police
6
6
7
9
8
11
10
11
12
15
Streets
1
2
2
2
2
2
2
2
2
2
Total General Fund
19
27
30
38
44
56
60
61
68
74
ENTERPRISE FUNDS
Storm Drainage
-
-
-
-
-
-
-
1
1
1
Utility Billing
-
-
1
1
2
2
2
2
1.5
2.5
Wastewater
1
2
3
2
2
2
2
2
3
5
Water
1
2
4
5
5
5
5
5
7
8
Total General Fund
2
4
8
8
9
9
9
10
13
16.5
CAPITAL PROJECTS FUND
-
-
-
-
-
1
1
1
1
1
21
31
38
46
53
66
70
72
81
91.5
Source: Town of Prosper Annual Budget
75